6% UK interest rate IMFprediction

IMF and UK interest and inflation fears

The International Monetary Fund (IMF) is an international organization that monitors the health of the global economy and provides financial assistance to countries in need.

UK interest rate warning from the IMF

  • The IMF has warned that the UK faces another five years of high interest rates to stem rising prices, which have been falling but remain stubbornly above target.
  • The IMF expects the UK to have the highest inflation and slowest growth next year of any G7 economies, which includes the US, France, Germany, Canada, Italy and Japan.
  • The IMF says the UK’s immediate prospects are being weighed down by the need to keep interest rates high to control inflation, which is partly caused by the terms-of-trade shock from high energy prices, the aftereffects of the global pandemic, Brexit fallout and the Russia/Ukraine war.

Peak at 6%!

The IMF believes Bank of England rates will peak at 6% and stay around 5% until 2028. Rates are currently 5.25%.

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