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The Guardian - UK
The Guardian - UK
Business
Larry Elliott Economics editor

UK interest rates will stay high unless service sector inflation falls, says IMF

International Monetary Fund Inflation Economy Interest Rates PierreOlivier Gourinchas Bank of England United Kingdom
People shelter under umbrellas in Oxford Street.
The UK’s service sector inflation has fallen to 5.7%. Photograph: Andy Rain/EPA

The UK faces the prospect of interest rates being higher for longer unless there is more progress in reducing service sector inflation, the International Monetary Fund has warned.

While the Washington-based IMF nudged up its 2024 growth forecasts for the UK, it identified the stickiness of price growth in the service sector as a potential headache for the Bank of England.

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