Thursday, 3 August 2017

Bank of England lowers growth forecast for 2017

Subdued wage growth has contributed to the Bank of England lowering its growth forecast for 2017.

The bank edged its growth forecast down to 1.7% from its previous forecast of 1.9% made in May. It also cut its forecast for 2018 from 1.7% to 1.6%.

It is also now gloomier on prospects for wage growth and thinks wages will grow by 3% in 2018 down from the 3.5% estimate it made in May.

The bank voted 6-2 to keep interest rates on hold at 0.25%.

They have been at that level since August last year.
Weak wage growth combined with rising inflation has been weighing on the spending power of households.

BBC    News.