As the Bank of England (BoE) meets to contemplate the end of its ultra-easy monetary policy, Britain's leading business lobby group predicts the country's economic growth could stall in the second half of this year.
The Confederation of British Industry (CBI) predicts that the key factors to the country's fast-growing economy -- business and consumer confidence, improving credit conditions and better demand expectations – will start to wear off. On top of this, domestic political concerns and geopolitical tensions will combine with this slowdown to produce a plateau effect for U.K. growth, the CBI forecasts.
"For the rest of this year, we expect growth to get onto a more even keel and the recovery to become further entrenched next year," John Cridland, the CBI's director-general said in a press release on Thursday morning.
"U.K. businesses are still facing a significant amount of uncertainty, with the forthcoming Scottish referendum, the general election next year and the debate on Britain's place in the European Union. In the wider world, geopolitical risks are growing, with heightened tensions in Ukraine and the Middle East."