The pound edged higher against the euro and US dollar today after chancellor George Osborne announced gross domestic product forecasts had been raised for the next two years.
The chancellor announced new forecasts from the Office for Budget Responsibility, where the economy will grow by 2.4 per cent next year, up from 2.3 per cent announced in July. In 2017 growth will be at 2.5 per cent, compared to the 2.4 per cent previously anticipated.
The pound gained on the dollar, now sitting at $1.509 compared to today's low of $1.505. Against the euro, the pound increased from €1.412 to €1.425.
The OBR is relying on stronger growth to cut the deficit.
Osborne also announced that the OBR predicted the ratio of debt to GDP would sit at 82.5 per cent this year, not the previously anticipated 83.6 per cent, which will fall to 81.7 per cent next year, down to 71.3 per cent in 2020-2021.
Osborne also said there will be a budget surplus by 2019-20.