IMF urges UK to make two interest rate cuts... as Labour's pledge to make Britain fastest growing economy in the G7 lies in tatters
In a report on Tuesday, the International Monetary Fund (IMF) said it expects rates to drop from the current 4.25 per cent to 3.75 per cent by Christmas.
It came as the fund warned Labour's pledge to make Britain the fastest growing economy in the G7 is in tatters in the wake of the Chancellor's tax hikes.
EU members of the group are faring even worse – compounding the bloc's misery as it reels from a lopsided trade deal with the US that has left it with worse terms than Brexit Britain.
Germany, France and Italy, as well as Japan, will all grow less than the UK over the next two years, according to the IMF.
Two more rate cuts – as suggested by the IMF – would boost households and businesses hoping for lower borrowing costs.
Britain does hold some unwanted records, with inflation the highest among the seven nations at 3.6 per cent.
The UK Government's borrowing costs on the international bond markets are also higher than in any other G7 nation – piling further strain on creaking public finances.
Shadow Chancellor Mel Stride said: 'Business confidence has collapsed all because of the Chancellor's reckless economic choices.'
In an update to its World Economic Outlook, the IMF said it expects the UK economy to grow by 1.2 per cent this year and 1.4 per cent in 2026.
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