Since 2012, 10 million eligible workers have been automatically signed up to workplace pensions. From April, their contribution will rise from 3% of their salary to 5%.
Monetary Policy Committee member, Gertjan Vlieghe, predicts that the Committee would choose to ease monetary policy in the event of a no-deal Brexit. In a speech made today, Vlieghe said his opinion about the future path of Bank Rate has changed from last year, when he thought one to two quarter point hikes per year in Bank Rate "was the most likely central case". Since then, he said the economic outlook had changed; global growth has slowed more than expected, and sooner than expected, and domestic growth has also slowed more than expected.
CPI inflation fell to 1.8% in January, down from 2.1% in December 2018, according to the latest ONS data. December's figure is the lowest inflation rate seen since January 2017, when it was also 1.8%, and is the first time in two years that CPI inflation has been below the Bank of England's 2% target.CPIH inflation, which is now used as its headline measure and which includes owner occupiers’ housing costs, was also 1.8% in January, down from 2.0% in December.
Last week the Bank of England cut its growth forecasts to 1.2% this year and put the odds of the UK slipping into recession by the summer at one in four. GDP growth slowed to 1.4% between 2017 and 2018, the weakest it has been since 2009, according to the latest ONS statistics.
Brexit uncertainty will slash UK economic growth in 2019 to the weakest rate since the global financial crisis a decade ago even if the UK manages to secure an orderly departure from the European Union next month, according to the Bank of England’s latest forecasts. The central bank now expects growth in 2019 to come in at only 1.2 per cent, driven by slumping business investment as firms freeze spending due to the heightened risk of a no-deal outcome on 29 March.