Tue, 22 Apr 2025

Tue, 22 Apr 2025 Three more UK interest rate cuts this year, predicts IMF

But the IMF also sees UK inflation going up as bills rise, while economies will be hit by Trump tariffs.

* The International Monetary Fund (IMF) predicts that UK inflation will be 3.1% this year, making it the highest in advanced economies.
* The IMF expects the Bank of England to cut interest rates three more times this year.
* The UK economy is expected to grow at a rate of 1.1% in 2025, down from previous predictions of 1.6%, due to global trade tariffs and higher borrowing costs.
* US President Donald Trump's tariffs are also contributing to the downgrade in UK economic growth.
* The IMF expects UK inflation to slow to 2.2% by 2026, close to the Bank's 2% target.
* Chancellor Rachel Reeves is attending a meeting of top economic policymakers at the IMF and will make Britain's case for a trade agreement with Washington that would lower or eliminate US tariffs on British goods.
* The global economy is still bearing "significant scars" from recent shocks and is being severely tested again.
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