{"id":188173,"date":"2024-12-04T12:06:11","date_gmt":"2024-12-04T12:06:11","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/04\/uk-interest-rates-higher-for-longer-due-to-budget-says-oecd\/"},"modified":"2024-12-04T12:06:11","modified_gmt":"2024-12-04T12:06:11","slug":"uk-interest-rates-higher-for-longer-due-to-budget-says-oecd","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/04\/uk-interest-rates-higher-for-longer-due-to-budget-says-oecd\/","title":{"rendered":"UK interest rates higher for longer due to Budget, says OECD"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/i0.wp.com\/ichef.bbci.co.uk\/news\/1024\/branded_news\/99f6\/live\/aabf53c0-b22e-11ef-afbb-adf2418b5e72.jpg?resize=1024,576&amp;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"UK interest rates higher for longer due to Budget, says OECD\" title=\"UK interest rates higher for longer due to Budget, says OECD\" \/><\/div><p> <br \/>\n<\/p>\n<div data-component=\"text-block\">\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">UK interest rates will fall more slowly than expected over the next two years in the wake of the latest Budget, according to an influential think tank&#8217;s forecasts.<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">Although Budget measures would boost the economy in the short-term, changes to tax and spending would mean the cost of borrowing would fall more slowly, said the Organisation for Economic Co-operation and Development (OECD).<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">The measures are also likely to push UK inflation, which measures how prices rise over time, above the rate seen in other major economies.<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">Chancellor Rachel Reeves welcomed the forecast, however, saying &#8220;growth is our number one priority&#8221;.<!-- --><\/p>\n<\/div>\n<div data-component=\"text-block\">\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">The OECD predicted that UK economic growth would get stronger, rising to 1.7% in 2025, &#8220;boosted by the large increase in public expenditure set out in the autumn Budget&#8221;.<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">In October, Reeves set out plans to increase public spending by nearly \u00a370bn per year of extra, funded through tax rises and more borrowing.<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">On Wednesday, the OECD said that UK interest rates, which currently stand at 4.75%, are expected to fall back to 3.5% by early 2026.<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">It said that this was partly down to inflation coming in higher than expected, so there is not as sharp a drop as previously forecast. <!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">Currently, it expects that inflation will stand at 2.7% next year, up from the 2.4% previously expected.<!-- --><\/p>\n<p class=\"sc-eb7bd5f6-0 fYAfXe\">It is then forecast to fall back to 2.3% in 2026, remaining above the Bank of England&#8217;s target of 2%.<!-- --><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.com\/news\/articles\/cx2y51ej0pko\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK interest rates will fall more slowly than expected over the next two years in the wake of the latest Budget, according to an influential think tank&#8217;s forecasts. Although Budget measures would boost the economy in the short-term, changes to tax and spending would mean the cost of borrowing would fall more slowly, said the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":188174,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/ichef.bbci.co.uk\/news\/1024\/branded_news\/99f6\/live\/aabf53c0-b22e-11ef-afbb-adf2418b5e72.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[5002,1261,6572,1120,65,42807,6829],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/188173"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=188173"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/188173\/revisions"}],"predecessor-version":[{"id":188175,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/188173\/revisions\/188175"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/188174"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=188173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=188173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=188173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}