Economic growth theme continues

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The UK economy continues to show strong steady growth aided by recovery in the main European markets...

The UK economy continues to show strong steady growth aided by recovery in the main European markets of France and Germany. Economic growth is expected between 2.5% and 3% this year and next and inflation is being closely watched by the MPC. Like the US, the labour market is tight in certain areas and wage inflation remains the major threat to the economy. Sterling's strength against the euro has clearly been a help to the MPC in cooling the economy at the expense of British Industry and this remains the wild card in the Treasury's calculations. In the current political climate interest ra...

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