IMF upgrades UK inflation outlook
Analysis based on 10 articles · First reported Jul 08, 2026 · Last updated Jul 08, 2026
The improved UK inflation outlook may reduce pressure on the United Kingdom — Bank of England to raise interest rates further, supporting bond and equity markets. However, elevated global inflation and risks of renewed Middle East conflict could weigh on sentiment.
The International Monetary Fund (IMF) released an update to its World Economic Outlook, projecting that UK inflation will ease back to the 2% target by mid-2027, earlier than previously expected. The IMF noted that the global economic shock from the Middle East conflict has been 'better than feared', partly due to a recent interim peace deal between the United States and Iran that has tempered oil prices. Global inflation forecasts for 2026 and 2027 were revised slightly upward, while global growth forecasts were adjusted marginally. The IMF maintained its UK growth forecast of 1% for 2026. Chancellor Rachel Reeves commented that the UK is the only G7 country where the growth forecast has been upgraded this year.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard