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Is UK economy headed for 'stagflation'?

Bank of England downgrades growth forecast and predicts more inflation as it cuts rates

The Bank of England has halved Britain's growth forecast for 2025 as it also predicted a spike in inflation due to rising gas and utility bills. On the day the Bank cut interest rates from 4.75% to 4.5%, governor Andrew Bailey stressed he believed the underlying trends still pointed towards reduced inflation long term. However some economists said the economy could be heading for a bout of "stagflation" - that's when growth is low but inflation is high.

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