UK Weekly: Housing market adds to the downside risks to activity

We suspect that the recent slowdown in house prices this year is temporary. But while it is not our base case, a weaker housing market for longer would add to the downside risks to our already below-consensus forecast for GDP growth of just 0.8% in 2025.

Next week the Bank of England will almost certainly cut interest rates by 25 basis points. We’ll be discussing the outlook for Bank of England, Fed and ECB policy in a 20-minute online Drop-In at 2pm BST on Thursday 8th May. (Register here.)

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