The Bank of England must contend with a slowdown in Britain's economy but also stubborn inflation pressures when it considers whether to cut interest rates in early February as well as its message about the outlook for the rest of the year.

All boroughs are also set to see a 4 percent rise in the portion of tax that goes towards the Mayor of London, which has gone up to £18.98. The City of London has seen a 3 percent increase to £171.25. This part of London is officially one of the UK’s best places to visit in 2025.

Slower inflation provides ‘welcome’ boost to London markets - The FTSE 100 finished 99.59 points, or 1.21%, higher to end the day at 8,301.13.

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

U.K. inflation fell to a lower-than-expected 2.5% in December, with core price growth slowing further, according to data released by the Office for National Statistics.

Less than a third of businesses in the city now believe the UK economy will improve over the next 12 months. But 48% of firms in the capital expect their turnover to grow in the next year. Nearly half, 48 per cent, of businesses also expect their profitability to rise over 2025.

Thanks to years of cutbacks in public spending and unprecedented inflation, London’s borough councils are facing a cash crisis. Soon, for the first time thousands of London’s poorest residents will have to pay council tax, while 15 boroughs will increase council tax for all residents.

LONDON — Inflation in the U.K. unexpectedly fell in December, a move that has bolstered expectations that the Bank of England will cut interest rates again next month and relieved some pressure ...

LONDON (Reuters) - British inflation unexpectedly slowed last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by finance minister Rachel Reeves after recent a market selloff.

Inflation is stuck above the BoE's 2% target and looks set to rise further while the economy has stagnated since the middle of 2024, offering conflicting signals for the central bank's rate-setters.

Foreign investors are flocking to Turkey's local debt markets, saying they are impressed by interest rate cuts and easing inflation and are hoping that a regional transformation could further boost their bets on the economy.

Markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen strengthened after a widely expected interest rate hike by the Bank of Japan.