WS #15747
The IMF has upgraded the UK’s 2026 growth forecast to 1.3%, citing strong international resilience, but warned that inflation is expected to fall more slowly than previously predicted. This mixed data suggests a moderate recovery with persistent price pressures, which may limit the Bank of England’s ability to cut rates aggressively. The upgrade supports UK asset valuations but keeps a lid on consumer spending power. Goldman Sachs has upgraded its global equities outlook to overweight, citing strong international resilience and favoring US and Asian markets. This institutional endorsement provides a bullish counter-narrative to geopolitical fears, suggesting that capital flows will continue to support equity valuations despite external risks. The upgrade is likely to influence short-term trading flows and sentiment, particularly in US large-cap and Asian tech indices.
UK Economic Resilience and Inflation
The IMF has upgraded the UK’s 2026 growth forecast to 1.3%, citing strong international resilience, but warned that inflation is expected to fall more slowly than previously predicted. This mixed data suggests a moderate recovery with persistent price pressures, which may limit the Bank of England’s ability to cut rates aggressively. The upgrade supports UK asset valuations but keeps a lid on consumer spending power.
Goldman Sachs has upgraded its global equities outlook to overweight, citing strong international resilience and favoring US and Asian markets. This institutional endorsement provides a bullish counter-narrative to geopolitical fears, suggesting that capital flows will continue to support equity valuations despite external risks. The upgrade is likely to influence short-term trading flows and sentiment, particularly in US large-cap and Asian tech indices.