Latest news with #UK-EuropeanUnion
Reuters
20-05-2025
- Business
- Reuters
UK economy to grow 1.0% in 2025; sentiment improves slightly: Reuters poll
BENGALURU, May 20 (Reuters) - Britain's economy will grow a bit faster this year than thought a month ago, a Reuters poll of economists predicted, partly due to unexpectedly strong growth in the first quarter that was not expected to persist. Sentiment has improved following a basic trade deal with the United States, which still leaves a 10% tariff on British goods but lowers duties on cars and steel. Economists surveyed do not expect it to make much difference to growth. The poll was taken May 15-20, mostly ahead of a UK-European Union summit in London aimed at resetting relations nine years after Britain voted to leave the trading bloc. A strong minority of economists who contributed to both this month's and last month's polls, 22 of 50, raised their growth forecast for this year by 25 basis points on average, with the median at 1.0% versus 0.9% expected in April. It was the first median upgrade in five months. "The UK government is massively increasing spending this year. There's a lot of money coming in and that's going to act as a bit of a tailwind as well. Real wage growth is also still quite strong, so the economy still has some reasonable underpinnings", said James Smith, economist at ING. The Bank of England is expected to stick to one interest rate cut per quarter, with the next likely in August and then in November, ending the year at 3.75%. That rate outlook has remained steady for many months. Still, economists and markets are braced for inflation to rise well above the BoE's 2.0% target before easing back by the middle of next year. Inflation is forecast to have risen sharply to 3.3% in April, from 2.6% in March, in a release due on Wednesday. It will average above 3% this quarter and next, according to the latest poll. "On services inflation, the news should actually get better than the Bank of England expects," said ING's Smith. "This week it'll come in a little bit below their forecast and then potentially again in May and in June." (Other stories from the Reuters global economic poll)
Yahoo
19-05-2025
- Business
- Yahoo
Sterling on track for fifth weekly rise versus euro, await UK-EU meeting
By Stefano Rebaudo (Reuters) -Sterling was on track for its fifth straight weekly rise against the euro on Friday, while hovering near its highest levels since early April. President Donald Trump's April 2 announcement of aggressive trade duties triggered a sharp but brief selloff in U.S. assets in the following days, supporting the single currency. The greenback fell on Friday, tracking U.S. Treasury yields, but was set for its fourth weekly rise versus the euro. The euro area's currency rose 0.1% to 84.14 pence but was on track for a weekly fall of 0.51%. It hit 84 pence on Tuesday, its lowest since April 3. Market focus is shifting to a UK-European Union meeting next week after the pound rose on Thursday on strong economic data. "Market participants will be hoping for a 'reset' of sorts in the relationship between Britain and the common bloc in the hope that an accord can be reached that reverses some of the damage done to trade relations," said Matthew Ryan, strategist at global financial services firm Ebury. "Signs of closer alignment between the UK and EU should be bullish for the pound," he added. Britain's foreign minister will host European peers on Monday to discuss support for Ukraine and greater regional defence cooperation in the run-up to Prime Minister Keir Starmer's summit with European Union leaders next week. Meanwhile, analysts are assessing the economic outlook after data showed that British businesses and consumers have remained largely unfazed by worries about the outlook for the economy. ING highlighted that GDP growth slowed in the first quarter of 2025 on a yearly basis, while Schroders noted the British economy was open and prone to suffer from a global slowdown. The pound rose 0.05% to $1.33303. Sign in to access your portfolio
Business Recorder
19-05-2025
- Business
- Business Recorder
Sterling on track for fifth weekly rise versus euro
LONDON: Sterling was on track for its fifth straight weekly rise against the euro on Friday, while hovering near its highest levels since early April. President Donald Trump's April 2 announcement of aggressive trade duties triggered a sharp but brief selloff in US assets in the following days, supporting the single currency. The greenback fell on Friday, tracking US Treasury yields, but was set for its fourth weekly rise versus the euro. The euro area's currency rose 0.1% to 84.14 pence but was on track for a weekly fall of 0.51%. It hit 84 pence on Tuesday, its lowest since April 3. Market focus is shifting to a UK-European Union meeting next week after the pound rose on Thursday on strong economic data. 'Market participants will be hoping for a 'reset' of sorts in the relationship between Britain and the common bloc in the hope that an accord can be reached that reverses some of the damage done to trade relations,' said Matthew Ryan, strategist at global financial services firm Ebury. 'Signs of closer alignment between the UK and EU should be bullish for the pound,' he added. Britain's foreign minister will host European peers on Monday to discuss support for Ukraine and greater regional defence cooperation in the run-up to Prime Minister Keir Starmer's summit with European Union leaders next week. Meanwhile, analysts are assessing the economic outlook after data showed that British businesses and consumers have remained largely unfazed by worries about the outlook for the economy. ING highlighted that GDP growth slowed in the first quarter of 2025 on a yearly basis, while Schroders noted the British economy was open and prone to suffer from a global slowdown. The pound rose 0.05% to $1.33303.
