8 June 2023 - UK has the highest inflation and close to the slowest growth in G7
The UK is expected to have the highest rate of inflation and the second-lowest rate of growth in 2023, according to a report published by the OECD yesterday. Inflation is expected to average 6.9% this year, while growth is expected to be 0.3%, which is an upgrade on the earlier estimate where a contraction of 0.2% was predicted. Although neither the OECD nor the IMF predict a recession this year, a lot will depend on the actions of the Bank of England. Interest rates that have been increased at every meeting of the Monetary Policy Committee for the past eighteen months most likely stand on the cusp of becoming restrictive on demand and possibly contributing to a recession. It is the base case of the OECD that the Bank will end its cycle of hikes following the meeting that is due to take place two weeks from today, or if they feel that core inflation is unlikely to fall, one further meeting. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.