Bank of England forecast sees GDP in 2019 +1.5% vs +1.2% in February

According to the updated economic projections in the Quarterly Inflation Report, the Bank of England forecasts the economy to expand by 1.5% in 2019, higher from the 1.2% reported in February's publication.

Key takeaways

"GDP growth of +0.5% (QoQ) in Q1 2019 (February +0.2%)."

"GDP in 2020 +1.6% (February +1.5%), 2021 +2.1% (February +1.9%).

"Inflation in one year's time at 1.72% (February 2.35%), based on market interest rates."

"Inflation in two years' time at 2.05% (February forecast 2.07%), based on market interest rates."

"Inflation in three years' time at 2.16% (February 2.11%), based on market interest rates."

"Unemployment rate at 3.7 pct in two years' time (February 4.1%), based on market rates."

"Wage growth +3.5% (YoY) in Q4 2020 (February +3.25 pct), +3.75% in Q4 2021 (February +3.75%)."

"Long-term equilibrium unemployment rate at 4.25% (February 4.25%), medium-term productivity growth at 1% (YoY) (February 1%)."