Phoebus comment on GDP

16 October 2025

Richard Pike, chief sales and marketing officer at Phoebus Software, commented:

“Growth in GDP is encouraging and in line with the IMF’s prediction this week that the UK will have the second-fastest growing economy in the G7 this year. But it doesn’t change the fact that the economy remains finely balanced. Inflation is still high and predicted to remain there, and unemployment is rising. That combination makes it harder for the Bank of England to justify cutting rates in November.

“For now, stability is likely to be the Bank’s priority. A premature rate cut could risk reigniting price pressures just as they’re starting to ease.

“Attention will now turn to the Autumn Budget. The Chancellor faces the difficult task of supporting growth without fuelling inflation. Targeted investment in productivity and innovation would be far more effective than broad tax giveaways.

“Today’s figures are a positive signal but not enough to declare victory. The recovery is still fragile and will need careful management from both the Bank and the Treasury in the months ahead.”