UK Economics

UK Economics Update

1 November, 2018

Autumn Budget package will boost growth (and rates)

The fiscal loosening announced in the Autumn Budget has prompted us to raise our forecasts for GDP growth and interest rates. In our base case, which assumes a Brexit deal is secured, we now expect GDP to rise by 2.2% next year and by 2.0% in 2020 (up from 2.0% and 1.8% respectively). We have also pencilled in an additional 25bps increase in interest rates.

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