United Kingdom

In the World 22nd January 2026

UK CPI rises slightly above expectations (3.4%) with core inflation remaining at 3.2%

Bankinter | December CPI rises slightly above expectations: 3.4% versus 3.3% expected versus 3.2% previously. However, the underlying rate remained unchanged at 3.2% versus 3.3% expected. Services continue to be the biggest contributor to inflation: 4.5% versus 4.4% previously. Bankinter analysis team’s view: Mixed data. Despite the rise in the overall rate, the core rate remains in line with the previous month. Lower wage pressures (weekly wage growth excluding bonuses…

In the World 22nd December 2025

Bank of England lowers rates to 3.75% in first cut since last August

Link Securities | The Bank of England’s (BoE) Monetary Policy Committee approved by five votes to four a quarter-point cut in its benchmark interest rate to 3.75%, the first cut since last August. The four members who voted against the move argued for keeping rates unchanged. On this occasion, BoE Governor Andrew Bailey supported the decision to cut rates. The BoE’s benchmark rate is now at its lowest level since…

In Europe 25th November 2025

Moody’s maintains UK’s rating at Aa3 with stable outlook, raises Italy’s to Baa2 with stable outlook

Bankinter | Moody’s maintained its Aa3 rating with a stable outlook for the United Kingdom. The agency highlights strengths such as a rich, diversified economy and a solid institutional framework. It also notes the government’s commitment to reducing the deficit, with the budget due to be presented on Wednesday (26 November). In any case, its projections of moderate growth and a gradual reduction in the deficit lead it to estimate…

In the World 23rd October 2025

UK CPI stagnates at 3.8% year-on-year in August, giving Bank of England some breathing space

Intermoney | The British CPI stagnated from August to September, while the year-on-year reading remained unchanged at 3.8% annually (compared to the 4.0% increase forecast by analysts) thanks to the decline in food and services. Similarly, the core CPI was lower than expected, falling by one tenth of a percentage point to 3.5% annually. Breaking down the report, food prices gave us the biggest surprise on the downside. It was…

In the World 7th April 2025

UK suggests to EU establishment of institution with fund to finance defence projects

BancaMarch | United Kingdom proposes to the European Union the creation of a supranational institution including a joint fund to finance defence projects. The document is an informal proposal drafted by the British Treasury. Next week, EU finance ministers and their counterparts from the UK and Norway will meet to discuss the financing of defence spending. In the British proposal, the purchased equipment would be recorded on the balance sheet…

In Europe 29th March 2025

UK increases defence budget but cuts spending in face of lower growth prospects

BancaMarch | The budget watchdog cut GDP forecasts for 2025 to just +1%, down from an initial +2%. In a scenario of greater economic weakness and rising borrowing costs, the British finance minister, Rachel Reeves, updated the budget in the face of the threat of breaching fiscal rules. The debt markets seemed to welcome the emphasis on fiscal responsibility. The measures involve cuts of up to £14 billion by 2029-2030….

In Europe 13th March 2025

Five Years of Brexit Without Economic Benefits

Crédito y Caución | The UK’s foreign trade remains scarce, and the main sectors of its economy are suffering from rising costs, more complex bureaucracy, and labour shortages. Five years ago, Brexit marked the beginning of a new era for Great Britain. The Trade and Cooperation Agreement introduced new regulatory barriers and customs controls with the European Union, but also the theoretical possibility of a British economy free to trade…

In Europe 27th February 2025

UK to increase defence spending to 2.5% of GDP by 2027 with ‘ambition’ of raising it to 3% by 2029

Bankinter | The Prime Minister (Keir Starmer) announced that he will increase defence spending to 2.5% of GDP by 2027 with the ‘ambition’ of raising it to 3% by 2029 (vs. the current 2.3%). According to Starmer, the increased defence spending will not be financed by tax rises or increased debt, but rather by cutting ‘expenditure on overseas development’. Opinion of the Bankinter analysis team: Good news for the defence…

In Europe 15th January 2025

UK faces a gilt crisis

Juan Pedro Marín Arrese | The markets have been battering the UK gilts since Rachel Reeves delivered a disappointing budget in October. A sizeable increase in taxes but proving unable to fill the gap inherited from the last Conservative government did not seem like the best recipe to address the looming stagflation. Fears that ongoing deterioration might force the Chancellor to tap into taxpayers’ money again in a couple of…

European politics, In Europe 5th August 2024

EU calls on Labour government to deliver on Brexit deal

Banca March | Following the arrival in power of Labour’s Keir Starmer, the EU is once again demanding that the United Kingdom fully implement the Brexit agreement for Northern Ireland, as well as respecting the rights of EU citizens with a view to improving relations with its European partners. Thus, the EU’s list of demands to the UK includes the implementation of the agreement designed for Northern Ireland – permanence…

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