Growth in the UK economy will accelerate in the first half of 2015, after slowing slightly in the final quarter of 2014 according to fund manager Schroders.
UK GDP growth in the last quarter of 2014 slowed to 0.5%, compared to 0.7% in the third quarter. Overall, the economy grew by 2.6% in 2014, the fastest annual rate of growth since 2007 and the start of the global financial crisis. Commenting on the figures, Schroders senior European economist, Azad Zangana, said growth in the latter part of 2014 was robust by historical standards. She added: “Looking ahead, we forecast the economy to accelerate in the first half of 2015 thanks to the increase in households’ disposable income from the fall in fuel prices and cuts in household energy bills.”
Zangana said that with inflation likely to become negative, there is little appetite for higher interest rates at the Bank of England in the near term, but that it may consider raising rates by the end of the year.