BoE may be first to hike rates but not till 2015

Last year saw a sharp turnaround in the performance of the UK economy. Real GDP averaged 1.9% growth in 2013, well up on the meagre 0.3% registered in 2012.

Not surprisingly, given the increased activity levels in the economy, the labour market also experienced robust improvement. There were strong increases in employment levels, helping to push unemployment down to 7.1%, having begun the year at 7.8%.

The pick-up in activity is all the more remarkable, given the preoccupation in the early part of last year on concerns over the possibility of a triple-dip recession in the UK economy.