Bank of England concern about the pound's strength has been revealed in comments from one of Threadneedle Street's top officials, who has said a further rise in sterling would damage hopes of an export boost to the economy.
The UK economy will exceed its pre-recession peak this summer, according to the latest predictions from British businesses, despite warnings that the recovery is on shaky foundations as a booming housing market stokes consumer confidence .
UK homeowners and businesses should be braced for an interest rate rise around the time of next year's general election, a senior Bank of England policymaker said on Thursday in the most explicit guidance on borrowing costs yet provided by Threadneedle Street.
Hopes that the recovery kept up momentum at the close of last year will be boosted by a report suggesting businesses are enjoying their strongest growth since before the financial crisis.
The International Monetary Fund is widely expected to raise its outlook for the UK this week, nudging up the country's growth forecasts by more than for any other major economy.
What a difference a year makes.
George Soros is worried about China, and we should take note. The hedge fund boss, who built his fortune betting on the world's money markets, is concerned that 20 years of rapid growth is about to run out of steam.
A rising population, a low-tax regime and insulation from the worst of the eurozone's problems leave Britain on course to overtake Germany as Europe's biggest economy within the next two decades, according to a study released on Thursday.
Interest rates will stay low until Britain enjoys a prolonged period of strong growth, a Bank of England policymaker has said in a speech indicating that historically cheap credit will remain in place well beyond next year.
Britain's economy needs sustained low interest rates to spur growth and repair the stricken banking sector, the Bank of England governor Mark Carney has warned, in a strong rebuttal of critics calling for a rapid rate hike in response to a galloping housing market.
Britain has slipped two places down Europe's league table of living standards falling to sixth after being overtaken by Austria and Germany, the European Union's statistical body said.
It says something about the enfeebled state of the British economy when the Treasury can take comfort from a forecast from the Organisation for Economic Co-operation and Development that growth will be just 0.9% next year.