Bank of England boosts 2021 UK growth forecast to 7.25% in wake of successful vaccine rollout
hrobertson@businessinsider.com (Harry Robertson)
The Bank of England sharply increased its forecast for 2021 UK economic growth to 7.25%.
It cited the successful rollout of coronavirus vaccines and falling COVID-19 cases.
The BoE held interest rates at 0.1% and kept its bond-buying programme steady.
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Policymakers at the Bank kept interest rates at the record-low level of 0.1% and maintained the size of its bond-buying package, through which the BoE injects money into the economy, at £895 billion ($1.25 trillion).
The BoE predicted UK gross domestic product will grow 7.25% in 2021, considerably higher than its February estimate of 5% growth. UK GDP contracted 9.8% in 2020, the worst slump out of the G7 countries.