Interest rates could be cut three more times this year by the Bank of England, the International Monetary Fund (IMF) has said.
With the UK struggling with higher-than-expected inflation, the organisation predicted Britain would have the highest in the world's advanced economies this year at 3.1%, the BBC reports.
It also said the economy would grow less than predicted, up 1.1% in 2025 instead of 1.6%, largely due to the global effects from US trade tariffs. The report comes as top economic policymakers meet in Washington this week at the IMF's spring gathering.
IMF chief economist Pierre-Olivier Gourinchas told reporters that the IMF expected three more interest rate cuts by the Bank of England in 2025 after a quarter-point cut in February.
The report said that the spike in inflation expected this year would be a "temporary phenomenon" which would leave room for rate cuts.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 166-points at 8,435 shortly after opening this morning.
Brent crude oil futures were up 1.53%, trading at $68.47 a barrel.
Companies reporting today
Croda* - Q1 Corporate Sales Release
Hochschild Mining - Q1 Results
Quilter - Q1 Trading Statement
Reckitt Benckiser* - Q1 Trading Statement
Volvo AB* - Q1 Results