Bank of England forecasts modest growth until 2021

The Bank of England’s West Midland’s Agent, Graeme Chaplin, met members of the Coventry and Warwickshire Chamber of Commerce (CWCC) at a gathering at Coombe Abbey recently, at which he told them that the Bank’s forecasts for the economy, over the next three years, are for growth of around 1.75% per annum, on the assumption that the Brexit process will be ‘relatively smooth.’

Chaplin is one of a national network of twelve Bank of England agencies, spread across the UK, who act as the ‘eyes and ears’ of the Bank, and play a crucial role in linking local businesses and economies with the Bank’s policy makers in London. The Bank estimates that its agents have 9,000 discussions with their regional contacts every year, as well as making over 600 presentations to audiences of the kind that Chaplin talked to at Coombe Abbey.

At the meeting with the CWCC Chaplin acknowledged that the economic outlook would be influenced very significantly by the response of households, businesses and the financial markets by the Brexit, which would have an impact on the Bank’s forecasts. With our exit from the EU no only six months away, it is essential to maintain close contacts between the Bank and regional and local business in order to monitor the situation and understand its nuances and complexities.

Ajay Desai, the Director of CWCC said:”Graeme always takes the time to give businesses an update from the Bank of England but this is very much about him asking the questions and listening to companies in Coventry and Warwickshire to help inform the Bank. It is great that businesses, through the Chamber, get the opportunity to feedback on what they are experiencing on a day-to-day basis and what their plans are for growth.”

“The Bank’s latest growth forecasts are modest and are based on a deal with the EU being achieved and does assume that businesses will keep on investing and exporting.”