Watch/Listen

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?

24/02/2015

Keith Wade

Keith Wade

Chief Economist & Strategist

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.

Important information: The views and opinions contained herein are those of the named author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroder Investment Management Ltd (Schroders) does not warrant its completeness or accuracy. The data has been sourced by Schroders and should be independently verified before further publication or use. No responsibility can be accepted for error of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past Performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of any overseas investments to rise or fall. Any sectors, securities, regions or countries shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. Forecasts and assumptions may be affected by external economic or other factors. Issued by Schroder Unit Trusts Limited, 31 Gresham Street, London, EC2V 7QA. Registered Number 4191730 England. Authorised and regulated by the Financial Conduct Authority.