UK Economy

The British Pound proved remarkably resilient after UK inflation figures undershot expectations, putting the Bank of England on course to cut interest rates in the summer.

Consumer inflation expectations in the UK have fallen below their long-run average, in a sign the Bank of England is winning the fight against elevated inflation.

UK economic output has been recovering since October, according to a new study from Pantheon Macroeconomics, and all signals point to a strong first quarter outturn for the UK economy.

Current fiscal rules lack credibility, impose scant debt discipline, and allow governments to game the system. Oxford Economics proposes three solutions that would help cut government debt, boost growth, and reduce the scale of austerity that the next parliament will be forced into.

The UK economy returned to growth in January, according to monthly GDP data, which can help the British Pound stabilise from its recent slide against the Euro and Dollar.

UK wage and employment data undershot market expectations, boosting the odds of a June rate cut at the Bank of England and resulting in a broadly weaker British Pound.

The British Pound was softer on the day a much-watched survey of the UK job market confirmed an ongoing trend of cooling wage increases just a day ahead of the official ONS wage data release.

According to the British Retail Consortium, UK retail sale growth disappointed in February owing to wet weather, but economists say the outlook is brightening.

The outlook for consumers continues to brighten, say economists, following the release of the Bank of England's monthly lending figures.

Concerning news for the Bank of England's plans to cut interest rates later this year after it is reported UK businesses are "plotting a hiring spree".

According to a new analysis, the UK is locked on a trajectory to hit record taxation levels while less money will be spent per person.

Gas and electricity prices will fall 12% from April as the decline in global wholesale natural gas prices feeds through to UK households.

GfK says UK consumer confidence fell in February, but a "stable outlook for future personal finances is encouraging."

The UK economy appears to have extended its early-2024 recovery through February, with a much-watched survey of the economy reporting "a solid rate of service sector growth".

Chancellor Jeremy Hunt received a shot in the arm ahead of next month's budget after it was reported UK public finances recorded a record monthly budget surplus in January thanks to a strong tax take and lower-than-expected borrowing.

The British Pound firmed on Friday following the release of stronger-than-expected UK retail sales for January, which will contribute to evidence that the economy will exit recession this quarter.

The British Pound dropped to fresh lows for the week after it was confirmed the UK fell into recession in the second half of 2023.

Bank of England Governor Andrew Bailey has responded to January's inflation data surprise by warning that the numbers do not change the outlook presented at the Bank's last policy meeting.

The Bank of England will cut rates to as low as 4.0% by year-end as recession and deflation threaten the UK economy, according to the Institute of Economic Affairs (IEA).

UK headline CPI inflation might be running at double the Bank of England's 2.0% target, but if we look closer at the data we see a strong disinflation is underway in the UK, opening the door to interest rate cuts.