The National Institute of Economic and Social Research lowered its U.K. growth projections and expects the Bank of England to raise interest rates at the start of next year.
The think tank downgraded growth forecast for this year to 2.4 percent from 2.5 percent and that for next year to 2.3 percent from 2.4 percent. For 2017, it estimated 2.6 percent expansion.
The jobless rate is forecast to remain at around 5.25 percent throughout the rest of this year and next year.
Inflation is expected to rise from close to zero percent in 2015 to 1.1 percent next year.
The institute said the BoE is likely to lift interest rates at the start of 2016 and then gradually by 50 basis points a year, reaching 2 percent by the end of 2018.
The material has been provided by InstaForex Company – www.instaforex.com