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“If the UK economy is not competitive then it cannot grow”Ahead of the Autumn Budget on 26 November, the British Chambers of Commerce (BCC) has urged the government to take decisive action to improve the competitiveness of the UK economy. In a new report the BCC warned that, without increasing investment and productivity, the UK risks falling further behind its international peers. In 1997, the […]
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‘Finding the right balance in uncertain times’The Organisation for Economic Co-operation and Development’s (OECD’s) latest Economic Outlook, released last week, projects global growth of 3.2% this year, easing to 2.9% by 2026, following growth of 3.3% in 2024. The slowdown reflects the drag from rising tariffs and persistent policy uncertainty, which are weighing on trade and investment. The report, ‘Finding the […]
Market Commentary
“We’re not out of the woods yet”The Monetary Policy Committee (MPC) voted to retain Bank Rate at 4% during its September meeting last week, following a 0.25 percentage point cut in August. This outcome was in line with expectations, as last week’s data from the Office of National Statistics (ONS) found that inflation remained at 3.8% in August. The MPC outline […]
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“In the latest month, GDP showed no growth, with increases in services and construction offset by falls in production”The latest figures from the Office for National Statistics (ONS) show that the UK economy flatlined in July, with no growth recorded. This is in line with expectations and follows gross domestic product (GDP) growth of 0.4% in June. ONS highlighted that monthly growth rates can be volatile, so it recommends referring to the three-month […]
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“Britain’s economy isn’t broken, but I do know that it’s not working well enough for working people”Chancellor Rachel Reeves has confirmed that the Autumn Budget will take place on Wednesday 26 November, nearly a month later than last year’s Budget. Many economists have warned that tax rises or spending cuts are likely to be announced. Reeves is currently under mounting pressure to address the gap in the public finances while adhering […]
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“Retailers endured another tough month in August”Retail sales volumes fell for the eleventh consecutive month in August, according to the latest survey from the Confederation of British Industry (CBI). The monthly retail sales gauge was at -32%, marking little change from -34% in July. However, the pace of decline is expected to slow down in September, with the outlook improving to […]
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“These figures underscore the intensifying financial squeeze on households and businesses”Inflation was higher than expected in July, with prices rising by 3.8% year-on-year according to the Office for National Statistics (ONS). This is up from the 3.6% recorded in the 12 months to June and nearly double the Bank of England’s (BoE’s) target of 2%. Earlier this month, the BoE made the decision to reduce […]
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“The strong growth seen earlier this year was a one-off and underlying conditions remain fragile”The UK economy grew modestly in Q2, with gross domestic product (GDP) increasing by 0.3% according to the Office for National Statistics (ONS). While this is a slowdown from Q1 (0.7%), it is more positive than City economists’ and the Bank of England’s predictions of 0.1% expansion. The economy performed better than expected in June […]
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We will do what it takes to return inflation to our 2% targetThe Bank of England (BoE) cut Bank Rate from 4.25% to 4% at its August meeting last week, the fifth reduction since August 2024. It seems that it wasn’t an easy decision, as it took two rounds of votes for the Monetary Policy Committee (MPC) to reach a majority. Ultimately, five MPC members supported the […]
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The world economy is still hurtingThe International Monetary Fund (IMF) has predicted global economic growth of 3% in 2025 and 3.1% in 2026. This is an upward revision from the IMF’s forecast in April, partly due to recent front-loading in anticipation of higher tariffs. Easier financial conditions and fiscal expansion in some major jurisdictions also contributed to the improved outlook. […]
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Britain is open for businessAfter more than three years of negotiations, Britain has sealed a trade deal with India which is set to boost the economy by £4.8bn a year. The agreement includes reduced tax on Indian exports such as cars, clothing, food and jewellery. UK exports with lower tariffs include medical devices, aerospace parts, luxury cars, gin and […]
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This surprise uptick in CPI to 3.6% is a disappointment for households and businessesThe latest Consumer Prices Index (CPI) data from the Office for National Statistics (ONS) has shown an unexpected rise of 3.6% in the 12 months to June, up from 3.4% in the 12 months to May. This annual CPI rate is the highest recorded since January 2024, with a poll of economists predicting the rate […]
Market Commentary
Our focus remains on maintaining financial stabilityKey findings from the Bank of England’s (BoE’s) Financial Stability Report, released last week, have shown that the global risk outlook has become increasingly uncertain following recent geopolitical shocks which have resulted in heightened volatility in financial markets. Since the last report in November, global vulnerabilities have increased, with elevated risks to growth and inflation, […]