The Bank of England is anticipated to reduce interest rates by 0.25 percentage points to 4% to combat economic downturn and rising unemployment. This marks the fifth reduction since August and aims to ease borrowing costs for households and businesses. The UK economy faced a contraction of 0.1% in May and 0.3% in April, affected by uncertainties from trade tariffs imposed by the US. The unemployment rate rose to 4.7%, while the International Monetary Fund predicts minimal growth for the UK economy in the coming quarters, further emphasizing the need for monetary policy adjustments.
Policymakers are expected to cut interest rates to 4% to prevent economic contraction amid rising unemployment and global trade impacts from Trump's tariffs.
Financial markets predict an 80% chance of the Bank of England reducing rates, potentially marking the fifth cut since August 2022.
The UK economy contracted by 0.1% in May and 0.3% in April, with uncertainty tied to Trump's tariffs and new business taxes affecting growth.
The International Monetary Fund forecasts UK economic growth will struggle to exceed 0.1% in the latter half of the year, improving to 0.3% next year.
Collection
[
|
...
]