03-06-2025
UK's economic growth prospects to get verdict from OECD — follow live
Good morning and welcome to our live business coverage. The Organisation for Economic Cooperation and Development (OECD) will give its latest forecast on Britain's growth prospects at 8am. In March, the OECD, which represents 38 advanced economies, downgraded UK GDP growth this year and next due to escalating tariff wars.
It forecasts growth would be 0.3 percentage points lower than forecast this year at 1.4 per cent in 2025 and 0.1 percentage points lower next year at 1.2 per cent. Inflation forecasts were unchanged at 2.7 per cent this year and 2.3 per cent in 2026. Trade tensions have eased since then, but have started to ratchet up the end of last week.
Andrew Bailey, the governor of the Bank of England, will give evidence before the House of Commons Treasury Select Committee about last month's interest rate decision and monetary policy report at 10.15.
The MPC was split, with five members voting to reduce rates to 4.25 per cent from 4.5 per cent. Two members backed a half-point cut due to global trade disruption and lower energy prices, while another two voted to leave borrowing costs unchanged.
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