The UK economy will grow by 0 and a half per cent this year, according to the Bank of England, as it sees it the most secure and prosperous it has been since World War II.
But it’s a much lower growth rate than was predicted and still not the big news it was expected to be.
The central bank’s economists, in their latest forecast, said that Britain’s economic outlook is still in “the early stages”, which means there is still a lot of uncertainty about the economy’s future.
This means the Bank’s inflation forecast, which measures inflation from one month to the next, will be down by 0,000 to 0,100 points.
This is not a major improvement, but it is good news for consumers and businesses, the bank said.
However, the Bank said the outlook for the labour market will be “slightly weaker” in 2019.
This will mean fewer people will be working in the UK, which is likely to have a negative impact on inflation, the BBC reported.
However the Bank added that it does not expect the unemployment rate to rise much.
It is forecasting that there will be more people out of work, with the unemployment benefit being reduced by 1 per cent.
In addition, the unemployment benefits of people aged over 65 will be reduced by 0 per cent over the next three years, the news agency reported.
But the UK economy is still not in a position to meet its growth targets, with growth of 0.9 per cent expected for 2020.