IMF upgrades UK growth forecast in boost to Rachel Reeves

• UK economic growth will accelerate this year and next as falling inflation and interest rates strengthen domestic demand, the IMF has said, in a boost to chancellor Rachel Reeves ahead of her first Budget next week.
• The economy will grow by 1.1 per cent this year — a 0.4 percentage point upgrade on its previous projections — the fund said on Tuesday.
• In 2025, growth will pick up further to 1.5 per cent, the third-strongest forecast among the G7 group of advanced economies, the fund added in its latest World Economic Outlook.
• IMF chief economist Pierre-Olivier Gourinchas told the Financial Times that improving inflation might allow the Bank of England to cut interest rates more quickly — a further boost to the economy.

Source: The Financial Times

 

 

---