BoE’s upbeat outlook boosts sterling, UK shares

Policymakers upbeat on UK economy, pound and FTSE 100 rise

The British pound and UK stocks rose on Thursday after the Bank of England (BoE) raised interest rates and took a more upbeat view of the economy. The BoE raised the bank rate by 0.25% to 0.75%, in line with expectations. However, the central bank also upgraded its growth forecasts for the UK economy, saying it now expects GDP to grow by 3.75% this year, up from its previous forecast of 3.25%. The BoE also said it expects inflation to peak at 2.1% in 2023, down from its previous forecast of 2.3%.

Pound and FTSE 100 rise

The pound rose by 0.5% against the US dollar in the wake of the BoE’s announcement, while the FTSE 100 index of leading UK shares rose by 0.7%. The pound has now risen by more than 2% against the dollar since the start of the year, while the FTSE 100 has risen by more than 5%. The BoE’s more upbeat outlook for the UK economy is likely to be welcomed by investors, who have been concerned about the impact of Brexit on the UK economy.

BoE’s upbeat outlook

The BoE’s more upbeat outlook for the UK economy is based on a number of factors, including the recent fall in the oil price, which has reduced inflationary pressures. The BoE also said that the UK economy has been performing better than expected in recent months, with growth in the fourth quarter of 2021 being revised up from 1.3% to 1.5%. The BoE’s more upbeat outlook for the UK economy is likely to be welcomed by the government, which has been under pressure to boost growth. The government has pledged to invest in infrastructure and skills in order to boost productivity and growth.