Please note: this article is more than one year old. The views of our CIO team may have changed since it was published, and the data on which it was based may have been revised.
In our latest CIO Special, 'So far, so good: BoE policy under the sign of growth resilience', we look at the improved outlook for UK growth and consider the implications for central-bank decisions to come.
We highlight the following:
- In Q4, British households’ real disposable income increased - after four quarters of losses.
- Resilient growth in 2022 increases chances of avoiding a recession in 2023.
- Volatility in UK bond markets will remain as market expectations adjust to data-dependent monetary policy.