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The Bank of England’s governor, Andrew Bailey, warned of a “growth shock” in the UK economy due to Donald Trump’s trade policies, although he does not foresee an imminent recession. The IMF has downgraded the UK’s 2025 growth forecast from 1.6% to 1.1%, reflecting ongoing economic struggles since Labour’s election victory and heightened consumer uncertainty. As UK officials, including Chancellor Rachel Reeves, seek to negotiate trade agreements with the US to alleviate tariffs impacting British manufacturers, Bailey emphasized the need to balance growth risks with rising inflation expectations.
