Bank of England revises 2021 GDP growth forecast higher to 7.5% from 5%

In its updated projections, the Bank of England revealed on Thursday that it expects the UK Gross Domestic Product to grow by 7.5% in 2021, compared to 5% in the February forecast, per Reuters.

Additional takeaways

"BoE sees UK CPI 1.96% in two years' time, based on market interest rate expectations (February forecast: 2.11%)."

"BoE sees UK CPI 1.93% in three years' time, based on market interest rate expectations (February forecast: 1.98%)."

"BoE sees UK CPI 2.31% in one year's time, based on market interest rate expectations (February forecast: 2.07%)."

"BoE sees UK GDP +5.75% in 2022 (February forecast: +7.25%)."

"BoE sees UK GDP +1.25% in 2023 (February forecast: +1.25%)."

"BoE sees UK unemployment 5.1% in Q4 2021 (February forecast: 6.4%)."

"BoE sees UK unemployment to peak just under 5.5% in Q3 2021 (February forecast: 7.8% in Q3 2021)."

Market reaction

The GBP/USD pair, which dropped to a daily low of 1.3857 with the initial market reaction to the BoE's policy announcements, is currently rising 0.23% on the day at 1.3935.