British economic growth could be stronger than expected this year, boosted by lower oil prices and flat inflation that will encourage consumers to spend, according to an influential report published Monday,AFP said. The EY ITEM Club’s winter forecast predicted gross domestic product growth of 2.9% in 2015 – higher than its previous estimate and stronger than the government’s prediction of 2.4%. The report said lower oil prices would keep inflation at near zero in 2015, boosting the spending power of consumers. The Bank of England is likely to keep interest rates at their current record low of 0.5% until spring 2016, followed by a slow rise of 0.25%
