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EY Item Club released its economic forecasts for the U.K. on Monday. The U.K. economy is expected to expand 2.6% in 2016, after a 2.2% in 2015. According to EY Item Club, the economy will be driven by consumer spending, which is expected to rise 2.8% this year.
Inflation is expected to 0.7% in 2016, 1.6% in 2017 and 1.8% in 2018.
The thin-tank expects that the Bank of England (BoE) will not raise its interest rate until November due to low inflation.
EY Item Club said that it forecasts the BoE's interest rate to be 1% by the middle of 2017 and 1.5% by the end of 2017.
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