"Our forecast confirms that Britain has become one of the fastest-growing developed economies. We are leading, rather than following, other major economies when it comes to short-term growth," John Longworth, director general of the BCC, said in a press release.
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"The task at hand is to ensure that the stellar 2014 growth is not a flash in the pan. We need to invest and export more, innovate, and build…Strong international trade performance is key if we are to steer away from a reliance on consumer spending."
Interest rate hike
The BCC upgrade comes amid talk of an interest rate hike in the U.K. with analysts split as to the timing of the move from historically low levels.
Good data such as falling unemployment between April and the end of June to its lowest level since late 2008, has been mixed with almost stagnant wage growth.
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This has made the task of predicting the first interest rate rise difficult. The BCC expects the move to come in the first quarter of 2015, with the benchmark rate moving from the current 0.5 percent to 0.75 percent. It will then rise by 0.25 percent, hitting 2.25 percent in the fourth quarter of 2016.