British Chambers of Commerce:

  • Says Britain’s economy still looks on course to expand at a strong pace in 2015
  • Says raising interest rates now would pose a “huge risk” to its recovery

Has cut its forecasts for economic growth in 2014 and the coming years

  • Projects +3.0% (previously, in August had said +3.2%) this year, 2.6% (2.8%) next year & 2.4% (2.5%) in 2016.

The big political and economic risks:

  • stuttering euro zone economy
  • UK general election in May

Comments from BCC Director General John Longworth:

  • Warned the Bank of England on hiking rates … “Our dependence on consumer spending and mortgages means that the UK economy is particularly sensitive to interest rates”

BCC forecast a first interest hike to 0.75% in Q3 2015, with rates reaching 1.75% by the end of 2016

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via Reuters