The British economy did not grow in April, according to official figures released on Wednesday. This is a concern for Prime Minister Rishi Sunak, who has focused on economic growth as a key part of the Conservative Party’s election campaign. The Office for National Statistics cited wet weather as a factor that dampened consumer spending and construction activity during the month.
Despite hopes for a reduction in interest rates from the current 16-year high of 5.25%, inflation levels did not drop as much as anticipated in April. Inflation remains slightly above the Bank of England’s target and is expected to rise slightly in the near future. This has weighed on the British economy, which is likely to be used by political opponents leading up to the July 4 election.
While Treasury chief Jeremy Hunt believes the economy is starting to improve, Labour Party representative Rachel Reeves stated that it has stalled. These latest growth figures come just before the release of inflation data and the Bank of England’s next interest rate decision.
Given the upcoming general election, it is unlikely that the Bank of England will make significant policy changes in June. Sunak recently promised tax cuts and stricter immigration policies in the Conservative Party’s manifesto, while Labour, currently leading in opinion polls, is set to unveil its manifesto on Thursday.
+ There are no comments
Add yours