This issue of the CBI’s Economic and Business Outlook finds that the UK GDP growth has been surprisingly strong over Q2 and Q3, but is likely to be slower over the next few quarters. The recovery going forwards is likely to be better supported by business investment and net trade however. Meanwhile inflation remains sticky, but the MPC is still split over the degree of underlying pressure on prices in the medium-term. The CBI continues to forecast 2.0% growth in the UK economy in 2011. With the recovery expected to proceed slowly, we predict that growth will only pick up to 2.4% in 2012. Inflation in 2011 is higher than previously forecast and is not expected fall sharply in 2012. Gradual interest rate rises are sill expected to begin in the spring of 2011, and we see Bank Rate reaching 2.75% by Q4 2012.