Surprise boost for UK growth

GLOBAL banking firm Investec has lifted its growth projections for the UK economy with another interest rate cut pencilled in for later this year.

- By Samuel Norman

The financial services company expects the economy to grow 1.5% this year and 1.6% in 2026.

This trumps the Office for Budget Responsibility (OBR) forecast, which expects the economy to grow 1% this year.

It comes after “slightly firmer” GDP data, which has provided the Government with a modest boost.

Data from the Office for National Statistics (ONS) showed the UK economy grew 0.4% in June — an unexpected turnaround after tariff and tax uncertainty clouded the period.