Watch: Keith Wade on the outlook for the UK
The UK economy enjoyed robust growth heading into 2015, but with a general election on the horizon and the potential for more austerity measures and interest rate rises later in the year could the fortunes for UK economic growth be about to turn?
Chief Economist, Keith Wade, gives his views on the outlook for the UK economy in 2015:
- The UK economy is growing strongly as we come in to 2015, but it will face some headwinds over the next few months in the form of the general election and proposed austerity measures.
- Both main parties have indicated an intention to improve the budget position and get back from surplus, which could lead to tax increases and spending cuts.
- This creates a difficult backdrop for the Bank of England – we expect them to raise interest rates in November this year, but don’t expect that this will come any earlier than that as the economy may not be as strong as expected and inflation will have fallen following the fall in oil prices.