Britain's National Institute of Economic and Social Research is expecting a sustained Bank of England rate-tightening cycle beginning Thursday
- Say rates to peak at 2% in 2021
NIESR economist Amit Kara:
- "Now that we have lowered our productivity growth forecast, we have also raised the interest rate (path). There is a risk of overheating"
NIESR forecasts
- CPI will peak at 3.2 percent before the end of the year
- expects growth in 2017 as a whole to be 1.6 percent, picking up marginally to 1.7 percent in 2018 and 2019
- expects productivity to grow by just 1 percent a year over the next five years
via Reuters
more to come
