THE UK economy is expected to grow at its fastest rate since World War II, predicts the Bank of England.
The central bank has projected that UK gross domestic product (GDP) will rebound by 7.25% in 2021 as the nation learns to live with Covid-19.
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This would be the strongest growth the economy will have seen since records began in 1949.
The projected bounce back is better than the 5% increase economists had previously predicted.
It comes after the pandemic saw the UK suffer the biggest drop in output for 300 years in 2020, when it plummeted by 9.8%.
But it also added that it now expects growth to be slower in 2022 than they had first thought, down to 5.75% instead of 7.25%.
The Bank has also decided to keep the base rate a record low of 0.1% today while the UK economy emerges from its coronavirus lockdown.
Banks and building societies use the base rate to set their own interest rates on loans and savings.
Low interest rates benefit borrowers who will be able to apply for cheaper loans but savers will continue to be paid low rates on their nest eggs.
“The outlook for the economy… continues to depend on the evolution of the pandemic, measures taken to protect public health, and how households, businesses and financial markets respond to these developments,” the BoE said in a statement.
More to follow…
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