The Confederation of British Industry increased its 2010 economic growth estimate and said the Bank of England may suspend its bond-buying plan in February as policy makers set up to lift interest rates.
GDP will rise 1.2% next year after toning 4.5% in 2009, the U.K.’s leading business lobby said in a statement. The CBI formerly anticipated expansion of 0.9%. The group calculates that the bank will increase the standard interest rate from 0.5% in the second quarter to reach 2% by the end of the year.
Prime Minister Gordon Brown is planning to revive the economy and reconstruct constituent support, in time, for an election which must be held by June. The estimated show growth will start again with a 0.5% GDP rise in the current quarter, indicating an end to Britain’s greatest recession on record.
The upturn will be supported by companies upgrading stocks to meet a recovery in world growth and as exporters profit from a feebler pound, the CBI said.
