According leading economic thinktank the National Institute of Economic and Social Research, the UK economy is set to accelerate, with an increase of exports and wage increments expected to lead to nearly 2% GDP growth and a rise in interest rates.
After a slow start to the year, the UK economy is expected to surge back to life, according to the leading economic forecaster.
The Bank of England will raise interest rates next spring, nearly a year earlier than previously anticipated, and the central bank is expected to increase the cost of borrowing.
In a separate report, the institutes director Jagjit Chadha attributes much of the UK’s economic woes in recent years to the weakness of the banking sector by its supporting of businesses with extra loans.
Chadha says that the interest rate rise will support attempts by high street banks to increase their financial takings and the reserves utilised to shield them from another financial crash.
It was recently revealed that inflation was at its highest in four years as the UK was amid economic caution, but it appears fears are dissipating.
Following the Brexit vote, the Bank of England’s monetary policy committee sliced the interest base rate from 0.5% to 0.25, the lowest in its history.