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In its latest Quarterly Inflation Report (QIR), the Bank of England (BoE) announced that the Gross Domestic Product (GDP) in 2020 is now expected to grow 0.8%, compared to 1.2% announce in November’s report.

Key BoE forecasts

“Inflation bottoming out at 1.24% in q3 2020 (November forecast: trough of around 1.2% in Q2-Q3).”

“Inflation in one year’s time at 1.53% (November forecast 1.51%), based on market interest rates.”

“Inflation in two years’ time at 2.01% (November forecast 2.03%), based on market interest rates.”

“Inflation in three years’ time at 2.15% (November forecast 2.25%), based on market interest rates.”

“GDP growth in 2020 +0.8% (November +1.2%), 2021 +1.4% (November +1.8%), 2022 +1.7% (November +2.0%), based on market rates.”

“Calendar-year 2020 growth forecast reflects weak end to 2019, Q4 2020 GDP growth seen at 1.2% (YoY).”

“Unemployment rate at 3.7% in two years’ time (November forecast 3.8%), based on market rates.”

“Wage growth +3% (YoY) in Q4 2019 (November forecast +3.5%), +3.25% in Q4 2020 (November +3.25%), +3.5% in Q4 2021 (November +3.75%), +3.75% in Q4 2022 (November +3.75%).”