Keir Starmer is holding an extensive cabinet meeting with senior ministers following the Bank of England’s sharp revision of the UK’s growth forecast, a move that signals challenges ahead for the country’s economy. In response to rising inflation, the Bank of England cut interest rates slightly but also warned households to brace for higher inflation in the coming months.
The central bank’s decision, described as a “wake-up call” for Chancellor Rachel Reeves, followed a dramatic reduction in the UK’s economic growth projections. The Bank of England now forecasts GDP growth to be just 0.4% in the first quarter of 2024, a significant drop from the previously anticipated 1.4%. Projections for 2025 are similarly low, with growth expected at just 0.75%. The overall outlook remains subdued, signaling that the UK economy will continue to struggle in the near future, according to the Daily Record.
