The UK economy will benefit from falling inflation and lower interest rates in the second half of the year, boosting growth and allowing the government to offer pre-election giveaways, according to a study by a leading forecaster.
Handing Rishi Sunak a new year boost, the advisory business EY Item Club, which is sponsored by the accountancy firm EY, said its winter forecast showed that a long period of economic stagnation “should begin to fade this year as falling inflation, potential interest rate cuts and tax reductions create momentum for growth in 2024 and 2025”.
