UK Growth Forecast Raised to 1.2% for 2026 as Oil Price Decline Follows US-Iran Ceasefire

According to Bloomberg Economics, on June 29, the UK growth forecast for 2026 was raised to 1.2% from a prior estimate of 0.8%, citing the benefit of declining global oil prices following the US-Iran temporary peace agreement. The firm also lowered its inflation forecast to 3% from 3.5%, enabling the Bank of England to maintain interest rates at 3.75%. As long as Brent crude remains near $70 per barrel, policymakers may soon turn focus to further monetary easing, economists noted.
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