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The OECD recently predicted that the UK will experience the highest inflation among all advanced economies this year. U.K. inflation surprised with a dip to 6.7% in August, below expectations and sparking increased bets on a pause in interest rate hikes from the Bank of England on Thursday. The goods rate rose slightly from 6.1% to 6.3% but was more than offset by the services rate slowing significantly from 7.4% to 6.8%. Caroline Simmons, U.K. chief investment officer at UBS, told CNBC that the central bank will still most likely hike on Thursday. "We do believe that's going to be their last hike, however, because we do have these downward forces on inflation," she added.
Persons: Raoul Ruparel, Ruparel, Caroline Simmons Organizations: OECD, Bank of England, Reuters, National Statistics, Boston Consulting Groups, for Growth, of England, UBS, CNBC Locations: Sheffield, London
LONDON, Feb 27 (Reuters) - More than 60% of British businesses are optimistic about the country's economic growth in the medium term and their own revenues in the next few years, a survey showed on Monday, challenging some of the gloomy forecasts for the UK economy. About 61% of over 1,500 business leaders expect economic growth to be "somewhat or significantly better" in 2025, according to the Boston Consulting Group Centre for Growth's inaugural business survey. Some 63% also think their revenues will grow over the next three years. "UK businesses are undoubtedly feeling squeezed, but they're still standing." Data for the survey was collected between Jan. 11 and Feb. 2, when the BoE announced its latest interest rate hike and economic forecasts.
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