{"id":32964,"date":"2025-07-30T08:14:13","date_gmt":"2025-07-30T08:14:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/32964\/"},"modified":"2025-07-30T08:14:13","modified_gmt":"2025-07-30T08:14:13","slug":"imf-urges-uk-to-make-two-interest-rate-cuts-as-labours-pledge-to-make-britain-fastest-growing-economy-in-the-g7-lies-in-tatters","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/32964\/","title":{"rendered":"IMF urges UK to make two interest rate cuts… as Labour’s pledge to make Britain fastest growing economy in the G7 lies in tatters"},"content":{"rendered":"

By HUGO DUNCAN BUSINESS EDITOR <\/p>\n

Published: 19:14 EDT, 29 July 2025 | Updated: 19:25 EDT, 29 July 2025 <\/p>\n

Britain looks set for two more interest rate cuts this year to boost the economy as it lags behind Donald Trump<\/a>‘s America, according to a leading global watchdog.<\/p>\n

In a report on Tuesday, the International Monetary Fund (IMF<\/a>) said it expects rates to drop from the current 4.25 per cent to 3.75 per cent by Christmas<\/a>.<\/p>\n

It came as the fund warned Labour’s pledge to make Britain the fastest growing economy in the G7<\/a> is in tatters in the wake of the Chancellor’s tax hikes.<\/p>\n

EU members of the group are faring even worse \u2013 compounding the bloc’s misery as it reels from a lopsided trade deal with the US that has left it with worse terms than Brexit<\/a> Britain.\u00a0<\/p>\n

Germany<\/a>, France<\/a> and Italy<\/a>, as well as Japan<\/a>, will all grow less than the UK over the next two years, according to the IMF.<\/p>\n

Two more rate cuts \u2013 as suggested by the IMF \u2013 would boost households and businesses hoping for lower borrowing costs.\u00a0<\/p>\n

\"The <\/p>\n

The International Monetary Fund\u00a0warned Labour’s pledge to make Britain the fastest growing economy in the G7 is in tatters (pictured: Prime Minister Sir Keir Starmer on Tuesday)<\/p>\n

\"Rachel <\/p>\n

Rachel Reeves pictured on Friday. The fund’s announcement comes in the wake of the Chancellor’s tax hikes<\/p>\n

Britain does hold some unwanted records, with inflation the highest among the seven nations at 3.6 per cent.<\/p>\n

The UK Government’s borrowing costs on the international bond markets are also higher than in any other G7 nation \u2013 piling further strain on creaking public finances.<\/p>\n

Shadow Chancellor Mel Stride said: ‘Business confidence has collapsed all because of the Chancellor’s reckless economic choices.’<\/p>\n

In an update to its World Economic Outlook, the IMF said it expects the UK economy to grow by 1.2 per cent this year and 1.4 per cent in 2026.<\/p>\n

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