'Outcry' for rate and tax cuts would only be a 'short-term fix' to UK growth issues

Tenuous growth outlook

Calls for the Bank of England to begin cutting interest rates in response to the UK slipping into a recession would not work as a long-term solution to the country’s growth problems, experts told Investment Week.

According to data from the Office for National Statistics published today (15 February), the UK fell into a technical recession at the end of 2023, after the economy shrank by 0.3% in the final three months of the year. UK enters technical recession as economy shrinks 0.3% in Q4 2023 The overall GDP growth was the weakest change in real GDP since the financial crisis, up just 0.1% versus the previous year. Abhi Chatterjee, chief investment strategist at Dynamic Planner, said the recession was "confirmation of the fact that high interest rates are starting to affect the entire econo...