'It is not the 70s': OBR defends optimistic growth rates

GDP contracts by 1.4% in 2023 but inflation drops sharply over the year

clock • 3 min read

The Office for Budget Responsibility (OBR) has defended its more optimistic growth forecasts versus those of the Bank of England, telling MPs they are in line with energy market expectations.

OBR chair Richard Hughes told the Treasury Committee the projections are linked to inflation forecasts, which rely heavily on a relatively speedy fall in the price of energy. He said: "Energy shocks of the 70s and 80s lasted much longer than markets are predicting this shock will last." Market expectations imply there is a "really substantial fall in energy prices", especially gas prices, starting early in 2023 and "accelerating really sharply" through 2024 and 2025, another member of the OBR David Miles, told the committee. OBR confirms UK recession and weakest public finances 'fo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read
Advisers urged not to let clients 'act too soon' ahead of Budget

Advisers urged not to let clients 'act too soon' ahead of Budget

Communication is about ‘staying calm and keeping clients focused’

Isabel Baxter
clock 22 October 2024 • 5 min read
Why the Bank of England needs to stop over-sharing

Why the Bank of England needs to stop over-sharing

'We are used to the comments of central bankers moving markets'

Laith Khalaf
clock 17 October 2024 • 4 min read