UK Faces Five More Years of Sky-High Interest Rates, Says IMF
The UK is bracing for another half-decade of soaring interest rates as it battles relentless inflation, warns a major global watchdog. The International Monetary Fund (IMF) has thrown down the gauntlet, forecasting the UK will suffer the highest inflation and the slowest economic growth among G7 nations next year.
UK Economy Trails G7 Rivals
The IMF’s latest report slams the UK’s growth outlook, predicting a paltry 0.6% expansion in 2024—making it the slowest-growing developed country just as a general election looms. While the UK is set to outperform Germany this year, the forecast isn’t great news for British wallets.
In a statement, the UK Treasury hit back, pointing out the IMF hadn’t factored in the government’s latest growth forecasts or the recent crisis in Israel, underlining how fragile economic predictions can be.
“Our growth forecasts for advanced economies typically land within 1.5 percentage points of actual figures,” the IMF claimed in its biannual update on 190 member countries.
Metro Bank’s High Street Bet Under Fire
Metro Bank is on the ropes after co-founder Anthony Thomson slammed its insistence on ploughing resources into physical High Street branches. Despite a fresh fundraising deal aimed to secure its future, Thomson calls the strategy “flawed” and says it seriously limits the bank’s chances of turning a corner.
Thomson, who later founded digital-only Atom Bank, warned he wouldn’t envy Metro’s current bosses sticking to such an outdated model. Experts agree, saying the costly reliance on brick-and-mortar outlets clashes with customers’ growing love for online banking.
Mercedes-Benz Sales Take a Hit in China & US
Luxury car giant Mercedes-Benz reported a worrying 4% sales drop in Q3, hit hardest by supply chain snags and model changes in China and the US. The firm delivered 510,600 vehicles from July to September, with sales slumping 12% in China and plunging 15% in the United States.
However, Europe bucked the trend with a solid 12% sales boost, helping Mercedes-Benz keep its full-year targets intact. Overall, year-to-date sales are up 2%, letting the company stick to its plan of maintaining stable sales through the year.
