UK GDP has been widely forecast to increase by nearly 5 per cent in real terms next year, with inflation expected to touch 6 per cent and unemployment at just over 4 per cent. As a result, Matthews said pressures had been building for ultra-loose monetary policy to be tightened for a while.
A similar story is seen in the US, with the US Federal Reserve also dramatically shifting its projections for the direction of interest rates, predicting three interest rate rises in 2022 and a doubling of the pace of tapering its bond purchase programme (quantitative easing).
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