BoE raises UK growth expectations as 'global tensions ease'

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The Bank of England has raised its UK growth forecasts, despite ongoing Brexit tensions, as it indicated it is unlikely to raise interest rates until 2021.

In today's Inflation Report, the BoE said it anticipates growth of 1.5%, up from 1.2% forecast in February. In other projections, it has raised growth expectations for Q2 2019 from 1.3% to 1.6%, with this dipping to 1.5% in Q2 next year before reaching 2.2% by Q2 2022. Speaking the Inflation Report press conference, Mark Carney, governor of the BoE, said "global risk sentiment has recovered [recently] easing conditions in the UK". He also said the BoE expected a "modest pick-up in global growth this year" even though "domestic tensions remain". He added that consumption in the UK h...