Bank of England sharply raises UK growth forecast

Central bank predicts economy will grow by 2% this year as consumers and businesses appear to shrug off Brexit blues

The Bank of England has painted a brighter outlook for the UK economy this year, with faster growth, lower unemployment and a more modest rise in inflation.

After further signs that consumers and businesses have shrugged off the Brexit vote, the Bank revised its earlier gloomy forecasts to predict the economy would grow 2% this year - matching its 2016 performance.

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