IMF: UK GDP to grow 6.8% in 2021, 5% in 2022, CPI to peak at 5.5% in spring 2022

According to a report by the IMF, UK GDP is expected to grow 6.8% in 2021, followed by 5.0% in 2022. The international financing institution said it sees inflation in the UK peaking at about 5.5% in spring 2022 in the UK. Thus, the institution said that the BoE should begin to pare back on policy stimulus, though tightening would still keep policy mostly accommodative. 

Market Reaction

GBP/USD has not reacted to the latest report and continues to trade well within recent ranges in the 1.3250 area, though up from earlier session lows around 1.3200.