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Revised Economic Growth Predictions

Written By On 20/12/2013

According to the Office for National Statistics, gross domestic product has increased by 0.8 per cent in the third quarter of this year in comparison to April to June's quarter. This translates into Britain's economy expanding at a quicker pace than previously predicted.

The UK's new prediction for economic growth has now been lifted by 0.4 per cent to 1.9 per cent which has astonished certain economic experts.

Earlier this week, it was announced that the jobless numbers reduced by another ninety nine thousand in the last quarter to October, bringing the rate to 7.4 per cent compared to 7.8 per cent in the previous quarter.

BOE governor Mark Carney said a while ago that interest rates will not increase until unemployment went down to at least seven per cent. However, with the rate falling pretty rapidly, this is causing many people to panic about their mortgages and loans going up.

But Mr Carney has insisted more recently that a seven per cent rate will not necessarily trigger a hike from the half per cent that currently stands.

With all these figures from so many reports being brandished about there is no doubt that it is becoming increasingly confusing for the everyday person on the street.

But the Bank of England seem to be satisfied with inflation currently at 2.1 per cent which is only 0.1 per cent over their goal. This will hopefully relieve any pressure for Mr Carney to have to push up the historically low interest rate.

The BOE do believe that when rates do increase, millions of people across Britain with mortgages and loans on their homes will struggle enormously. They advise people to prepare in the best way possible by being more stringent with their finances.