According to IMF, high interest rates will continue in the UK for another five years.

A major international body has cautioned that the UK risks another five years of high-interest rates to control inflation.

The UK is predicted by the International Monetary Fund to have the greatest inflation and the slowest growth among the G7 nations, which also includes the US, France, Germany, Canada, Italy, and Japan.

The IMF report, according to the Treasury, does not take recent adjustments to UK growth into account.

The prognosis was created before Israel's unfortunate conflict.  

Given the numerous variables that influence economic development, from geopolitics to the weather, forecasts are seldom accurate. But these assessments can be helpful, particularly when they concur with other projections.

It predicted that the UK economy would expand by 3.2% in 2022 in July of last year. At the start of this year, it increased to 4.1%.

However, according to official UK data issued this month, the GDP of the nation will grow by 4.3% in 2022.

The IMF's most recent prediction, which it releases every six months, predicts that the UK will grow faster than Germany in 2023, keeping it out of the G7's bottom spot for growth.

However, it reduced the UK's chances for development in 2019, projecting that the country's GDP will expand by 0.6%, making it the least rapidly developing developed nation in 2024, which is widely expected to be a year of general elections.

According to the IMF, the UK's immediate prospects are being hampered by the need to maintain high-interest rates in order to curb inflation, which has been declining but stubbornly remains over the target.

Raising rates is justified on the grounds that it makes borrowing money more costly, which leads to household spending reductions. Additionally, it can imply that businesses won't raise prices as rapidly.

However, it is a delicate balancing act since boosting rates too quickly can harm businesses and economic expansion.

The IMF anticipates that the UK will see greater inflation than any other G7 nation both this year and the next year.

In addition, it thinks Bank of England interest rates will reach a peak at 6% and then hover around 5% until 2028. Right now, rates are 5.25%.

(Sources: bbc.co.uk)