Market comment - Bank of England raises UK GDP forecast for 2021 to 7%

Davy Research
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Yesterday’s new Bank of England forecast for 7% UK GDP growth is more optimistic than most private forecasters, expecting the level of activity to bounce back to its pre-pandemic level by end-2021. Although the Monetary Policy Committee expects CPI inflation to rise to 2.5% in 2021, it is still taking a benign view that these are temporary price pressures – with CPI inflation returning to 2% by 2023.