"While the Chancellor stepped back from the more aggressive tax rises that had been discussed earlier, the overall package is the highest tax burden on record, lower near-term inflation, and weaker already-fragile growth momentum. We now expect the Bank of England to cut rates in December and then follow with three more reductions in 2025. The data now supports it, the fiscal picture allows it, and the growth outlook increasingly demands it."
"Official figures underline that shift. Measures announced in the Budget, including rail fare freezes, fuel duty relief and steps to lower household energy bills, are projected to shave as much as half a percentage point off inflation in the second quarter of next year. This comes as price growth had already begun to cool, with October data showing inflation easing for the first time in seven months."
deVere Group forecasts a Bank of England rate cut in December followed by three further reductions in 2025 as growth slows and inflation eases. The Budget removed a major source of fiscal uncertainty by abandoning more aggressive tax rises while producing the highest tax burden on record and measures to cut household costs. Budget measures such as rail fare freezes, fuel duty relief and lower household energy bills are projected to reduce inflation by up to half a percentage point in Q2 next year. October data already showed inflation cooling for the first time in seven months.
Read at London Business News | Londonlovesbusiness.com
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