Britain’s economy may pick up faster than expected, according to the latest figures released by the Confederation of British Industry.

The CBI predicted “decent quarterly GDP growth”, and upgraded its forecast to growth of 2.6% this year and 2.5% in 2016.

Joh Cridland, CBI Director-General, said: “We’re encouraged by the twin engined-growth of household spending, spurred by stronger wage increases and low inflation, buttressed by business investment”.

The CBI also stated that, given these figures, it expected the Bank of England to announce its first rate rise in seven years in the first quarter of 2016.