The U.K.’s central bank has lowered its forecasts for growth in the coming years due to slowing economic activity and government austerity measures, along with inflation that will likely remain high for some time, according to Financial Times.
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.
Surging consumer prices in the U.K. have put increasing pressure on the central bank to increase interest rates to cool inflation, but officials warned that slow growth will contain price gains, according to Financial Times.
The central bank of the U.K. could increase its benchmark interest rate as much as three times this year as inflation continues to remain well above the target set by policymakers, according to The Daily Telegraph.
Price growth in the U.K. accelerated in the first month of the year to a rate double the target set by the central bank, although officials continue to argue that the inflationary pressure is “temporary,” according to The Daily Telegraph.