In the best financial news for years, the Bank of England has declared that the UK recovery has finally ‘taken hold’, with the economy now ‘growing robustly’.
The Bank’s latest quarterly inflation report showed a drop in the UK unemployment rate, from 7.8% to 7.6%. Governor Mark Carney promised not to raise interest rates until it reaches 7%.
Projections for UK economic growth have also been revised upwards.
Annual growth for this year is now forecast to be 1.6%, rising to 2.8% next year, rather than the 2.5% predicted in August.
“The economy is growing robustly as lifting uncertainty and thawing credit conditions start to unlock pent-up demand,” the report said.
Carney commented: “For the first time in a long time, you do not have to be an optimist to see the glass is half full.”
He added that the Financial Policy Committee would remain ‘vigilant about potential risks’ regarding house price inflation.