The International Monetary Fund (IMF) has urged the Bank of England to cut interest rates at least twice more in 2025 to support the UK economy. The Bank’s base rate currently stands at 4.25%, down from a post-Covid peak of 5.25%, following efforts to reduce inflation, which has now eased to 3.6%. Despite slight improvements in GDP projections - 1.2% for 2025 and 1.4% for 2026 - the IMF warned that global trade uncertainty and fiscal deficits could disrupt recovery. Chancellor Rachel Reeves welcomed the UK’s position as the fastest-growing G7 economy in Europe but faces criticism over recent tax increases, including higher National Insurance contributions and the extension of inheritance tax to pensions. Bank Governor Andrew Bailey suggested these tax hikes may be dampening business investment and wage growth. The IMF highlighted risks of financial market volatility and called for a cautious yet responsive approach. As global economic pressures persist, the UK must balance fiscal discipline with growth-friendly policies that promote employment, investment, and long-term stability. See