Fortunes-telling for 2025

MILLIONS of Britons will be anxious about what 2025 has in store as the economy slows, energy bills climb and inflation remains stubbornly high.

- Harvey Jones

Predicting the future is never easy, but Sarah Coles, head of personal finance at Hargreaves Lansdown, has made 10 predictions that she thinks have a fair chance of materialising in 2025. "By working out what's likely to happen next year, it's easier to prepare."

Interest rates will fall. The Bank of England is likely to cut base rates from today's 4.75%, which will ease the pressure on mortgage borrowers but disappoint savers.

"However, the BoE may only cut to around 4%, less than expected, as inflation remains sticky," Coles said.

Prices will increase. The days of double-digit consumer price inflation are largely over, but prices will grow.

The BoE recently warned inflation could hit 3% next year, up from 2.3% in October.