Goldman 2023 UK economic output forecast:
- expect a 1% contraction (the previous forecast was a 0.4% contraction)
- GS adds that core inflation is expected at 3.1% at the end of 2023 (previously forecast 3.3%)
- “Folding in weaker growth momentum, significantly tighter financial conditions, and the higher corporation tax from next April, we downgrade our UK growth outlook further and now expect a more significant recession”
Meanwhile the political firestorm in the UK continues. There will be an attempt to remove new PM Truss this week.
Weekend news gave GBP a pop:
Bank of England Gov Bailey says the next interest rate hike could be higher than expected