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Thursday, February 2, 2017

Bank of England raises UK growth forecast again to 2% for 2017

The Bank of England has sharply upgraded its forecast for UK growth again, predicting that economic output will expand as fast this year as it did last year and that unemployment will be just as low as it predicted before the Leave vote.

It predicted Britain's consumers will run down their savings and borrow at a record rate, fuelling a solid increase in gross domestic product of 2% this year - the same rate the Office for National Statistics reported for 2016 only last week.

The upgrade is only the latest in a series from the Bank.

Before the referendum last year it expected the economy to grow by 2.3% this year.

After the vote, it cut the forecast to 0.8%.

In last November's Inflation Report it raised the projection to 1.4%.

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