A lead economist at the U.K. central bank has put forward a rosy outlook for continued economic growth for the country, even with looming public spending cuts and lingering high inflation, according to Bloomberg. On Monday, Bank of England chief economist Spencer Dale said, The recovery in the U.K. is set to continue, although the banks governor, Mervyn King, has warned that growth in the coming months may be choppy. The positive message from Dale came with a note about uncertain aspects of the outlook, including the eurozone sovereign debt crisis, and looming budget cuts.
Dales projection was published as part of the foreward for the BOEs quarterly bulletin, and comes as Chancellor George Osborne prepares to unveil a new government budget on Wednesday. The high level of inflation has increased expectations for fiscal tightening from the central bank, and combined with the planned £111 billion in austerity measures, tighter policy could hold back growth, adds The Daily Telegraph. The Office of Budget Responsibility is set to unveil fresh forecasts for economic growth in 2011 along with Osbornes budget, and economists are expecting the group to slash its previous prediction for a 2.1% annual expansion.