S&P Global Expects UK Economy to Grow 1.5% in 2025 with Four Rate Cuts from BoE

S&P Global Ratings stated that the UK economy will gain momentum due to the Bank of England adopting a more accommodative monetary policy. The organization expects GDP growth to rise from its previous forecast of 1.3% to 1.5% in 2025. S&P also reported that growth is expected to be 1.6% in 2026, consistent with previous expectations, and 1.5% in 2027, below the earlier estimate of 1.7%. S&P forecasts that the Bank of England will cut interest rates four times in the coming quarters, bringing them down to 3.75% by the end of 2025. The organization anticipates that public consumption and investment spending could contribute 0.9 percentage points to GDP growth next year and 0.5 percentage points in 2026.