BOE Set to Give Labour a Reality Check Over UK Growth Plans
- Chancellor warned public-sector pay plans a risk to rate cuts
- GDP forecasts to fall short of 2.5% targeted by new government
The Bank of England’s Monetary Policy Report will be released on Aug. 1.
Photographer: Betty Laura Zapata/BloombergThis article is for subscribers only.
Prime Minister Keir Starmer’s ambition to lift UK economic growth to 2.5% a year is expected to be dealt a blow when the Bank of England releases new forecasts next week.
In its economic update on Aug. 1, the BOE will say the UK’s long-term growth potential is less than 2%, economists predict, leaving Chancellor of the Exchequer Rachel Reeves with tough decisions if she is to deliver big pay rises for public-sector workers and make a start on fixing the country’s dilapidated public services.