Higher taxes for businesses and a lingering drag from the previous rises in interest rates will mean GDP grows by a subdued 1.3% in 2025 and by 1.2% 2026. And it's only a matter of time before the recent weakening in the labour market leads to slower wage growth and contributes to CPI inflation falling below 2.0% in 2027. That will allow the Bank of England to cut interest rates from 4.00% now to 3.00% in 2026 rather than to 3.50% as investors anticipate.