BlockBeats news, on May 8, Pantheon Macroeconomics Chief UK Economist Robert Wood stated that the forecasts for UK economic growth in 2025 and 2026 have been downgraded, now expecting the country's GDP to grow by 0.9% and 1% in 2025 and 2026 respectively, down from previous estimates of 1.1% and 1.5%.
Although the inflation rate has fallen to 2.6% in March, it is expected that inflation will rise sharply in the coming months, potentially reaching 3.4% in the second quarter and only dropping to 3.3% by the end of the year.
Most of the data since the last forecast assessment would typically keep the MPC in a position of absolute caution. However, U.S. President Trump's tariffs have disrupted the global economy and unsettled financial markets. In this context, Pantheon Macroeconomics expects the Bank of England to implement three more rate cuts of 25 basis points this year, including consecutive cuts in May and June, and a final cut in November. (Jin Ten)