THE stock market rose for the ninth session in a row yesterday, partly in anticipation that the Bank of England will edge up its economic growth forecast in today’s quarterly inflation report.
It is the final report of outgoing governor Sir Mervyn King, with City economists believing recent positive data will allow him a more optimistic forecasting swansong. King, handing over to Mark Carney in July, is also expected to trim the Bank’s inflation prediction. Britain eked out growth of 0.3 per cent in Q1, while surveys in April showed an improving service sector, stabilising construction industry, and stronger manufacturing.
The Bank has forecast GDP rising to 2 per cent by end‑2014. The FTSE 100 index closed up 54.3 points at 6,686.