The City AM markets live blog

Good morning from the City AM liveblog team.

Another set of dreary prognostications arrived on the desk of Chancellor Rachel Reeves yesterday.

This time it was the turn of the OECD , which warned the UK would be hit by the highest rate of inflation of any G7 economy, with consumer prices rising 3.5 per cent.

While the UK’s growth in 2025, at 1.4 per cent, would be the second-highest after the US, that was set to slump to just 1 per cent next year, behind the US, Canada and Germany, the OECD said, as businesses reel from the pain of further tax hikes.

Despite the price rises, the OECD said it still expected the Bank of England to deliver another two rate cuts next year, taking Bank Rate to 3.5 per cent.

Gloomy forecasts aside, Reeves was in a more

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