Confederation of British Industry out overnight with their latest, improved, outlook
- 2015 +2.6% vs +2.4% prev
- 2016 +2.8% vs +2.5% prev
- lower inflation, rising wages and higher productivity all cited to boost consumer spending
Earlier on BBC radio CBI director-general John Cridland said interest rate hikes would have minimal impact on industry but recognized some shock to household budgets.
He seemed to have his head in the sand though when it came to the current global meltdown not seeming to recognize the knock-on effect of the Chinese faltering/declining scenario
The CBI now expects interest rates to rise in the first quarter of next year.
In June, it had expected rates to begin rising from their historic low of 0.5% from the start of April next year.
But it now says the improved growth picture alongside "more hawkish" comments from the Bank of England's rate-setting Monetary Policy Committee had prompted it to bring its prediction forward.
"We now expect interest rates to rise to 0.75% in the first quarter of 2016, and then rise at a slow pace thereafter," the CBI said.
Strange how lots of others seem to be pushing back their forecasts, more accurately reflecting current events