Bank of England Governor Mark Carney (Photo:businessinsider.com.au)
(VOVworld) - The Bank of England (BOE) has decided to raise UK economic growth forecast in 2014 from 2.8% to 3.4%. In the latest report on inflation announced on Wednesday, BOE said it will keep its basic interest rate at the record low of 0.5% for at least one more year despite the employment market has experienced remarkable improvements.
According to the bank, business investment activities will likely increase 11.5% in 2014 while investment in housing can increase 23%. With the strong recovery of the national economy, UK’s inflation can fall back to the set target of 2% in the next three years. The BOE reports the speed of economic recovery will not affect efforts to curb inflation.