Bank of England to upgrade economic forecasts

Posted on January 12th, 2017

The Bank of England looks set to upgrade its forecasts for the UK economy after admitting that some of the risks posed by the Brexit vote last June have now receded.

Giving evidence to the Treasury select committee, Governor Mark Carney said the Bank’s actions to avoid a market meltdown after the referendum were a key reason why Threadneedle Street might be raising its forecasts for a second time.

Carney also said the government needed to agree a transition deal for quitting the EU and insisted that Brexit posed a greater risk to the remaining members of the EU than the UK.

The Bank will publish its latest report on the economy next month and will take on board the stronger than expected performance in the second half of 2016, the Guardian has reported.