The Institute of Chartered Accountants in England and Wales: UK GDP growth slows, possibility of interest rate cut by the Bank of England next month.

Suren Thiru of the UK Chartered Institute of Accountants has stated that the UK's economic recovery in November has reduced the likelihood of a rate cut by the Bank of England in February. He mentioned that GDP grew by 0.3% month-on-month in November, which has made rate-setters concerned about inflation feel confident enough about the economic situation to postpone their vote in support of loose policy. Thiru stated that these data now mean that the UK economy achieved modest growth in the fourth quarter of 2025, and reduced uncertainty following the budget announcement may provide support for growth in December. However, he noted that the recovery in growth may not lead to sustained economic recovery, as soft consumer spending and increased tax burdens may mean that growth in 2026 will be weaker, despite the boost from falling inflation.