HomeNewsUK interest rates to...

UK interest rates to fall more slowly than expected after budget, claims report

Government’s spending and borrowing plans mean rates will stay higher for longer, according to OECD

UK interest rates will fall by less than expected over the next two years after Rachel Reeves revealed significant spending and borrowing plans in the budget, according to an influential report.

Rachel Reeves. In October, the chancellor set out plans for almost £70bn a year of extra public spending, funded through tax rises and increased borrowing

In its annual economic survey, the Organisation for Economic Cooperation and Development (OECD) said UK inflation would also surpass previous forecasts next year, and upgraded growth projections for the economy, because of boost from October’s budget.

The OECD said the global economy would “remain resilient” over the coming years but that “risks and uncertainties are high”.

The global economy is predicted to grow by 3.2% this year and 3.3% next year, the thinktank said. It reflects a slight improvement from its predictions of 3.1% and 3.2% respectively, from its September interim report.

Meanwhile, UK gross domestic product (GDP) is predicted to rise by 0.9% this year. This is a downgrade from its previous 1.1% forecast after recent data from the Office for National Statistics (ONS) showed that the economy grew by only 0.1% in the third quarter of the year.

“But momentum is positive nevertheless, with retail sales on an upward trend since early 2024,” the report added.

It indicated that GDP growth would strengthen to 1.7% next year as it was “boosted by the large increase in public expenditure set out in the autumn budget”. This will then slow to 1.3% in 2026.

Previously, the OECD had forecast 1.2% GDP growth for next year.

In October, the chancellor set out plans for almost £70bn a year of extra public spending, funded through tax rises and increased borrowing.

The OECD said on Wednesday that interest rates, which sit at 4.75%, were expected to fall back to 3.5% by early 2026.

However, it said higher consumption, partly caused by the autumn budget, meant this was not as sharp a drop as previously forecast.

The report said: “Fiscal policy will be tightening over 2024-26, though by less than expected, with significant fiscal loosening in the tax, spending, and borrowing package announced at the autumn budget.”

Source: The Guardian, https://www.theguardian.com/business/2024/dec/04/uk-interest-rates-to-fall-more-slowly-than-expected-after-budget-claims-report

 

- A word from our sponsors -

spot_img

Most Popular

More from Author

นักวิจัยด้านความปลอดภัยพบช่องโหว่ในฐานข้อมูลของ DeepSeek

DeepSeek บริษัทสตาร์ทอัพด้านปัญญาประดิษฐ์ของจีน ถูกนักวิจัยด้านความปลอดภัยค้นพบช่องโหว่ ซึ่งเป็นข้อมูลการสนทนาและคีย์ลับ หรือ Secret Keys กว่า 1 ล้านรายการ สร้างความกังวลเกี่ยวกับความเป็นส่วนตัวและความปลอดภัยของข้อมูลผู้ใช้ นักวิจัยด้านความปลอดภัยจาก...

Painting found at garage sale is a Van Gogh, experts say

A painting bought at a garage sale in Minnesota is a...

- A word from our sponsors -

spot_img

Read Now

Mr Nguyen Thang Long – The dream of elevating young designers at Global Student Fashion Week

In the Vietnamese fashion industry, Mr. Nguyen Thang Long is not only known as a passionate founder but also as a strong source of inspiration for the younger generation of designers. With firm belief in the talent and creative potential of young people, he has tirelessly worked...

Miss &Mister Celebrity Vietnam 2024 – Truong Thuy Trang & Doan Bao An – Image Representatives of GSFW

Truong Thuy Trang and Doan Bao An, winners of Miss & Mister Celebrity Vietnam 2024, have been appointed as Image Representatives for Global Student Fashion Week (GSFW) 2025. This marks a significant step in their careers while promoting Vietnamese fashion on the international stage. Truong Thuy Trang -...

นักวิจัยด้านความปลอดภัยพบช่องโหว่ในฐานข้อมูลของ DeepSeek

DeepSeek บริษัทสตาร์ทอัพด้านปัญญาประดิษฐ์ของจีน ถูกนักวิจัยด้านความปลอดภัยค้นพบช่องโหว่ ซึ่งเป็นข้อมูลการสนทนาและคีย์ลับ หรือ Secret Keys กว่า 1 ล้านรายการ สร้างความกังวลเกี่ยวกับความเป็นส่วนตัวและความปลอดภัยของข้อมูลผู้ใช้ นักวิจัยด้านความปลอดภัยจาก Wiz เปิดเผยว่าพวกเขาได้ค้นพบฐานข้อมูลสำคัญของ DeepSeek ที่เปิดเผยสู่สาธารณะโดยไม่มีการป้องกัน โดยข้อมูลที่พบประกอบไปด้วยประวัติการสนทนาของผู้ใช้งาน คีย์สำหรับยืนยันตัวตน API บันทึกระบบ และข้อมูลสำคัญอื่นๆ ซึ่งสามารถเข้าถึงได้โดยไม่มีข้อจำกัดใดๆ ทีมวิจัยของ Wiz ระบุว่าพวกเขาสามารถค้นพบฐานข้อมูลนี้ได้ภายในไม่กี่นาที โดยไม่ต้องผ่านกระบวนการยืนยันตัวตน ข้อมูลดังกล่าวถูกเก็บอยู่ในระบบจัดการข้อมูลโอเพ่นซอร์สที่เรียกว่า ClickHouse และมีบันทึกมากกว่า 1 ล้านรายการ Wiz ระบุว่าช่องโหว่นี้อาจทำให้แฮกเกอร์สามารถควบคุมฐานข้อมูลได้ทั้งหมด รวมถึงอาจเพิ่มสิทธิ์การเข้าถึงในระบบของ DeepSeek ได้ ซึ่งอาจนำไปสู่การโจมตีระบบภายในของบริษัท หลังจาก Wiz แจ้งเตือนเรื่องช่องโหว่ DeepSeek ได้ดำเนินการปิดฐานข้อมูลทันที อย่างไรก็ตาม ยังไม่มีข้อมูลแน่ชัดว่ามีใครเข้าถึงข้อมูลนี้ไปก่อนหน้าหรือไม่ นักวิจัยของ Wiz ให้สัมภาษณ์กับ Wired ว่าไม่แปลกใจเลยหากมีคนอื่นพบฐานข้อมูลนี้ก่อนพวกเขา เพราะมันถูกเปิดกว้างและค้นพบได้ง่ายมาก นอกจากนี้ พวกเขายังตั้งข้อสังเกตว่าระบบของ...

Painting found at garage sale is a Van Gogh, experts say

A painting bought at a garage sale in Minnesota is a previously unknown portrait by Dutch artist Vincent Van Gogh, according to a newly published expert analysis. It was made by Van Gogh during his stay at a psychiatric hospital in the south of France in 1889, experts commissioned...

Best red carpet looks at the 2025 Grammy Awards

The Grammy Awards are renowned for outlandish fashion. But on a night of tributes to first responders and victims of LA’s recent wildfires, many guests struck a comparatively restrained note at the Crypto.com arena on Sunday. The all-black trend seen at recent award ceremonies was embraced by everyone from Miley...

Meet the designer redefining lace for the 21st century

When British comedian and presenter Amelia Dimoldenberg stepped onto the red carpet to interview Sydney Sweeney in 2022, it only took a second for Dimoldenberg’s dress to reverse their roles. “This is amazing,” Sweeney said, reaching out to touch the presenters’ sleeveless black floor-length gown. The fabric —...

Anna Wintour takes off her iconic sunglasses for meeting with King Charles

Anna Wintour is rarely seen without her shades. But for a special occasion, she was prepared to break with tradition. The legendary Vogue editor-in-chief was presented with the Order of the Companions of Honour by King Charles III at Buckingham Palace on Tuesday. She was appointed to the order in...

Grammys and FireAid concerts expected to raise over $120 million for LA fire relief

The music industry came together for an ambitious Los Angeles fire relief effort the week of the Grammy Awards that is estimated to have raised more than $120 million. Of that, $9 million raised during the Grammys telecast on Sunday night, a representative for the Recording Academy told...

Miles Teller saved his recently deceased grandfather’s watch from Palisades Fire… and not much else

Miles Teller’s home was destroyed when the Palisades Fire ripped through his Los Angeles neighborhood last month, but he grabbed one very important item just in the nick of time. Teller recounted his harrowing experience evacuating his home in the Pacific Palisades – an affluent neighborhood in LA’s Westside that...

Kim Kardashian’s ‘Nobody Wants This’ mixup caused Adrien Brody’s Instagram to go ‘crazy’

Adrien Brody’s Instagram recently got a major surge in activity, all thanks to Kim Kardashian. “The Brutalist” actor recounted to late night host Jimmy Fallon on Monday’s episode of “The Tonight Show” how Kardashian mixed him up with Adam Brody in a message on her Instagram story last month raving...

Harrison Ford is ‘still happy’ he made ‘Indiana Jones 5’ despite underwhelming box office

It takes a lot to make Harrison Ford regret doing a project. This is especially true when it comes to the classic “Indiana Jones” franchise, in which Ford starred as the titular character, including the franchise’s fifth installment, 2023’s “Indiana Jones and the Dial of Destiny.” The movie grossed $60...

Ozzy Osbourne to reunite with Black Sabbath for farewell concert

Ozzy Osbourne has announced that the original members of Black Sabbath will play a concert together for the first time in 20 years. In a post on X, Osbourne revealed that he would reunite with Tony Iommi, Geezer Butler and Bill Ward to play one final show at Villa Park in...