The International Monetary Fund (IMF) has called on the Bank of England to slash interest rates to boost the UK economy.
With British businesses still reeling from Rachel Reeves' tax hikes, The Telegraph reports, the IMF called for interest rates to be lowered twice more this year from the current 4.25%.
Global trade uncertainty led to a period of growth at the start of this year and, as a result, UK growth is likely to be slightly higher than previous forecasts suggested, at 1.2%.
The IMF anticipates global rate cuts to slow compared to three months ago, with the Bank of England expected to cut “around twice more this year after pausing to assess incoming data”.
The Bank has already cut rates twice this year to 4.25%.
While investors are only planning for one more reduction, to around 4% in August, fears around the state of the economy could lead to another reduction before the end of the year.
It comes after Andrew Bailey earlier this month warned British firms were "adjusting employment and hours" to balance the books following the chancellor's October Budget.
Read the full story on The Telegraph website.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 2 points at 9,094 shortly after opening this morning.
Brent crude oil futures were down 0.01% at $71.73 a barrel.
Companies reporting today
- Aberdeen Group - Half Year Results
- Airbus* - Half Year Results
- Aston Martin* - Half Year Results
- BAE Systems* - Half Year Results
- Bodycote - Half Year Results
- Glencore* - Half Year Results
- GSK* - Q2 Results
- HSBC Holdings* - Half Year Results
- Man Group - Half Year Results
- Meta Platforms* - Q2 Results
- Microsoft Corp* - Q4 Results
- Rathbones Group - Half Year Results
- RHI Magnesita NV - Half Year Results
- Rio Tinto* - Half Year Results
- Sage Group - Q3 Trading Statement
- Taylor Wimpey * - Half Year Results