"George Osborne is finally recognising that the recovery, which he choked off in 2010, is still not secure or balanced. But he has not yet admitted that working people are facing a cost-of-living crisis and are £1,600 a year worse off since he became chancellor."
- Chris Leslie, Shadow Treasury minister
It seems that U.K. politicians and policymakers are having different views on the domestic economy. A couple of years ago the central bank has been accused for making unclear and even wrong projections regarding economic outlook, therefore amid disputes among Britain's leaders the accuracy of the central bank can become under scrutiny.
This week central bank's representatives claimed the nation's recovery is getting "more entrenched and broadly based", even though interest rates will remain on hold for the foreseeable future until stimulus will eliminate the remaining slack within the economy. Moreover, the BoE pointed out that conditions for a pickup in business investment are now in place, suggesting growth will be more sustainable as currently it is mostly led by private consumption and boom in the housing market.
On the contrary, the Chancellor George Osborne has warned the ongoing recovery is "not yet secure", as situation remains unbalanced. At the same time, he claimed for a further increase in exports and more cuts to the country's national debt. These comments echo with the latest revision of the U.K. growth for this year. Currently the official forecast stands fro 3.4% up from 2.8% expected earlier.
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