BofA slashes UK GDP growth forecast to 0.6% for 2026 and 1.1% for 2027 amid prolonged energy price shock.
Inflation expectations lifted to 3.5% in 2026 and 2.5% in 2027, with peak consumer price inflation hitting 4.1% Q4 2026.
Bank of England may raise rates twice to 4.25% by July 2026, then cut from April 2027; unemployment could reach 5.3% H2 2026.
Fiscal stance expected to stay within rules, with low single‑digit‑billion targeted aid like delayed fuel duty or low‑income support.