The Bank of England’s new economic forecast, which accompanies its rate decision, is not happy reading for Reeves. Growth in 2025 is now predicted to crawl upwards at a snail’s pace…
Staff at the BoE now say the economy will grow by only 0.75% in 2025, half of its last forecast from just three months ago in November. In its rate cut explanation the Bank adds:
“GDP growth has been weaker than expected at the time of the November Monetary Policy Report, and indicators of business and consumer confidence have declined. GDP growth is expected to pick up from the middle of this year… Productivity growth has been weaker than previously estimated, and the Committee judges that growth in the supply capacity of the economy has weakened. As a result, the recent slowdown in demand is judged to have led to only a small margin of slack opening up.”
In response Downing Streets says: “Growth is the priority of the Government, we are focused on taking the necessary decisions for growth.” At the same time the BoE predicts headline inflation to rise to a higher-than-expected 3.7% later in the year. Doesn’t look the the Budget is passing Starmer’s ‘growth test’ after all…
Sarah Pochin at Reform Scotland’s manifesto launch event: “I really wanted to come on in a Reform tartan burka, but apparently I wasn’t allowed… One day let’s do one of these events not live-streamed. We’ll do all the naughty stuff…”