Economic Growth
2 articles tagged with this topic.
Bank Rate held at 3.75% as BoE monitors energy-driven inflation
On 19 March 2026, the Bank of England’s MPC kept Bank Rate at 3.75% after six cuts since August 2024. It cited the war in the Middle East raising global energy prices, which will lift UK inflation above earlier expectations in the short term; current CPI inflation is about 3% versus a 2% target. The MPC said it will monitor conditions closely and act to keep inflation on track in the medium term.
UK GDP: Q4 2025 growth 0.1%; Reeves predicts stronger 2026
ONS data show UK GDP rose just 0.1% in Q4 2025 and 1.3% across 2025, undershooting forecasts. Services saw no growth, production rose 1.2%, and construction fell 2.1% (worst in four years), with weak consumer spending and falling business investment leaving little momentum into 2026. The Bank of England signalled possible rate cuts in the next meetings, while Chancellor Rachel Reeves said growth should be stronger in 2026.