Healey should ‘stay the course’ and repair UK finances, says top IMF economist

AI desk brief

The IMF lifted its UK growth forecast to 1.3% for 2026 and told the government to “stay the course” on fiscal consolidation, while warning that higher energy prices and long-term interest rates will weigh on growth in 2027. The article also notes markets have been repricing inflation and rate expectations higher across major economies since Middle East tensions re-escalated, with the BoE now widely expected to hike in November.

For metals, the near-term read is mildly supportive on the inflation/energy shock side, but offset by the prospect of firmer rates and higher funding costs. UK inflation is still seen above target through late next year, and the broader global policy backdrop remains tighter, which caps upside unless real yields turn decisively lower.