Real interest rate (%) - United Kingdom

UK Chancellor Faces Fiscal Pressure After February Borrowing Surge

UK government borrowing surged to £14.3bn in February 2026, the second-highest monthly figure in over 30 years, creating significant pressure on Chancellor Rachel Reeves to meet annual fiscal targets amid high spending and economic headwinds.

Source: IndexBox Mar 20, 2026

Bank of England Holds Interest Rate Steady Amid War-Driven Inflation Uncertainty

The Bank of England holds its interest rate steady, as a conflict involving Iran disrupts energy markets and complicates the path to lowering inflation, forcing a revision of economic forecasts for 2026.

Source: IndexBox Mar 19, 2026

UK Unemployment Could Exceed 5.5% as Middle East Conflict Delays Rate Cuts

Economic analysis projects UK unemployment could surge above 5.5%, impacting over 100,000 people, as Middle East conflict prolongs high energy costs and delays interest rate cuts, with manufacturing facing weak demand and rising costs.

Source: IndexBox Mar 16, 2026

UK Economy Stalls in January 2026, Missing Growth Forecasts

Official data shows the UK economy stalled with zero GDP growth in January 2026, falling short of expectations and complicating fiscal and monetary policy amid global energy supply disruptions.

Source: IndexBox Mar 13, 2026

UK Government Borrowing Costs Lead G7 Surge

The UK's government borrowing costs have risen fastest among G7 nations, driven by high oil prices and market nerves over fiscal intervention, squeezing public finances and raising mortgage rates.

Source: IndexBox Mar 9, 2026

John Lewis Abandons Build-to-Rent Ambition, Scraps 10,000 Homes Plan

John Lewis Partnership exits its build-to-rent housing ambition, scrapping plans for 10,000 homes due to high interest rates, inflation, and burdensome new regulations, marking a strategic retreat from property diversification.

Source: IndexBox Feb 26, 2026