Three more UK interest rate cuts this year, predicts IMF

The Bank of England could reduce interest rates three more this year, as the United Kingdom said with higher inflation than expected, said the International Monetary Fund (IMF).

The organization predicted that the inflation of the United Kingdom will be the highest in the advanced economies of the world this year with 3.1%, largely due to higher invoices, even for energy and water.

The fund also said that the United Kingdom’s economy will grow that previously predicted, 1.1% more in 2025 instead of 1.6%, due to the global consequences of the United States commercial tariffs.

The report occurs when the main ones in charge of formulating economic policies meet Washington this week at the spring meeting of IMP.

The reduction in the prospects of the United Kingdom’s economy is never belonging to the predictions for France, Italy and Germany.

Trump’s tariffs, a strong increase in loan costs, and a blow of inflation contributed to the reduction.

The chief economist of the IMF, Pierre Olivier Gourinchas, told journalists that the IMF waited three more interest cuts of the Bank of England in 2025 after a point cut in point in February.

However, Trump’s tariffs could also advance in the rhythm of the United Kingdom price increases as goods deviate from the United States.

The IMF expects the United Kingdom inflation to decrease to 2.2% by 2026, near the 2% target of the bank.

In response to the predictions, Foreign Minister Rachel Reeves highlighted how the IMF still saw a stronger economic growth in the United Kingdom in 2025 than in the other large countries in Europe.

“The report also clearly shows that the world has changed, so I will be in Washington this week to defend British interests and present the free and fair trade case,” Reeves said.

The United States Treasury Secretary, Scott Besent, is due to be known, where the case of Great Britain is expected to make a commercial agreement with Washington that he would like or eliminate US tariffs on British goods.

Gourinchas said the global economy “still has significant scars” of the “severe blows of the last four years.”

“Now it is severely proved once again,” he added.

The growth forecast of the United States for this year received the greatest reduction among the economies advanced by the IMF due to the uncertainty assigned to commercial tariffs.

It is now expected that the growth of the United States will be 1.8% this year, below the estimation of the IMF or 2.7% in January.

President Donald Trump has made a lot of ads on rates this year: taxes charged for the goods brought to the US of other countries.

In a growing commercial war, the United States has placed tariffs of up to 145% in Chinese products, while China has returned 125% in US products.

The United States has also introduced a 10% tax on the assets of the permanent majority of other countries, while stopping much higher for nations boxes for 90 days.

Trump says that tariffs will encourage US consumers to buy more goods manufactured in the United States, increase the amount of taxes collected and lead to large levels of investment in the country.