the Panco da England He faces great challenges with inflation, which is still above a goal 2 %And weak economic growth, with an economy UK Rausing in April. Ruler Andrew Billy He indicated that interest rates can be reduced 25 points base At the next meeting, but stressed the need to monitor persistent inflation and economic pressure.
In an interview with CNBC“The interest rate path will continue gradually.”. Economists expect the central bank to reduce the basic rate of 4.25 % to 4 % At August meeting. However, it has highlighted the importance of assessing whether inflationary pressures, such as increased wages and energy prices, will continue to soften them.
Inflation has arrived in the United Kingdom 3.4 % In May, much higher than average The euro areaThat was 2 % In June. Economic growth is still a challenge, as the British economy recorded a sharp decrease in April, in part due to global trade tariffs and internal tax increases. Finance Minister, Rachel ReevesClassified growth data as “clearly disappointing.”
Reeves, who implemented tax increases on companies to finance the large public spending program, defended the treasury choices to achieve stability in public financial affairs and control inflation. Since the introduction of its “financial bases” last October, the UK's economic scenario has become more challenging, with the increase in debt benefits and the weakest tax revenues.
the Budget response office Provides growth 1 % For this year and 1.9 % In 2026, Reeves admitted that there is “more to do” to enhance economic growth. For this, it has three options: reduce public spending, increased debt or raising taxes. Economists indicate that the last option is the most applicable, given its commitment to increased public spending.
Billy, while avoiding direct comment on government financial policies, stressed the importance of the “appropriate amount of flexibility” in the financial framework set by Reeves. He pointed out that strong financial planning is very important to stabilize the macroeconomic economy in the United Kingdom.
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