Overview

• The IMF has revised the UK's 2025 growth forecast down from 1.6% to 1.1% following the implementation of US tariffs.
• Bank of England Governor Andrew Bailey described the tariffs as causing a 'growth shock' and highlighted the UK's vulnerability as an open economy.
• Inflation in the UK is projected to peak at 3.75% this year, but the Bank of England may revise its forecast in the coming weeks.
• The Bank of England's Monetary Policy Committee is widely expected to cut interest rates by 25 basis points in early May to counter growth challenges.
• The UK government is engaging in trade negotiations with the US but has ruled out imposing retaliatory tariffs, opting instead for consultations on trade barriers.