UK economy forecast
The quarterly GDP growth of the UK started the year of 2017 at a high of 0.6% than continued to raise to the high of 0.7%. Click to view GDP Growth Historical Data This raise was propelled by the low interest rates of 0.25 accompanied by a inflation rate of 1.8% which is under the 2% target inflation rate. We see that because of these economic conditions UK house hold continued to accrue more house hold debt to supply their own over consumption which lead to an increase in the inflation rate which first came in at 3% at the end of Q3. .The BOE than decided to hike their rate to 0.5 during the start of Q4, This move by the BOE was more effective when it came to House hold debt but was unsuccessful when coming to inflation and propelled inflation to the high of 3.1% in November 2017.
Going forward its highly likely that we will get rate hikes through out the 2018 financial year to help combat the high inflation rate, of cause this also means that we likely to get a feather contraction in the UK GDP growth, with considerations to the current Brexit talks UK citizens are in for a challenging year on both the economical and political front
My view on the Cable (Pound)
We are likely to get a sideways market or a bear market depending on how well Tarisa May and her party handle the brixit situation.