2 Hrs
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وكالة الأنباء القطرية
Qatar National Bank: UK balances growth and inflation
The report from Qatar National Bank concludes that the Bank of England will continue to pursue a cautious monetary policy to maintain inflation stability at 2%, keeping interest rates at 3.75%, amid the challenge of balancing economic growth and elevated inflation that exceeds the target. Britain facing an economic crisis combines weak growth—around 1% over the past two years—with high inflation that remains above the target, driven by rising energy costs, taxes, and weak corporate investment. Reports warn that ongoing increases in government debt costs, approaching 100% of GDP, are putting additional pressure on public finances. The British economy faces the risk of stagflation, with the Bank of England favoring a gradual and cautious approach to adjusting interest rates to avoid exacerbating inflation or plunging into a deeper recession. The UK government aims to adopt a new economic model focused on investment and industrial renewal, but rising borrowing costs and a lack of fiscal flexibility hinder efforts to support economic growth.
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