Economic Review – December 2025
In our Economic Review of December – the Bank of England (BoE) warn further reductions were likely to become a ‘closer call,’ analysts suggest uncertainty ahead of the Budget affected growth, negatively impacting both consumer and business spending levels and retail conditions remain challenging.
News in Review
UK GDP unexpectedly shrank in October as production fell, Budget uncertainty lingered and rate cuts may be on the cards.
News in Review
July’s economic data shows a mixed picture – inflation hit 3.8%, largely due to rising air fares and food prices. However, government borrowing decreased and mortgage rates dropped below 5%, giving households a small but welcome boost in affordability.
News in Review
The Bank of England has cut interest rates to 4% as it targets 2% inflation. The National Institute of Economic and Social Research (NIESR) warns taxes may need to rise in the Autumn Budget to meet fiscal goals. Trump’s tariffs impact trade with over 90 countries.
News in Review
Global economic growth forecasts for 2025 and 2026 have been revised upward by the IMF. However, new US tariffs, ongoing geopolitical tensions continue to pose risks to the economy. Meanwhile, UK house price growth is picking up and Inheritance Tax receipts have risen.
