EUR News
LAST UPDATE: June 24, 2025
Bank of England’s Greene says she is worried that high inflation might plateau
Bank of England policymaker Catherine Greene flagged concern that inflation may stagnate at high levels, refusing to decrease or rise further, which could complicate monetary policy.
Insight
This signals reluctance to cut rates prematurely. A persistent high‑inflation plateau would force the Bank to balance its inflation mandate with subdued growth, potentially delaying policy easing.
Labour Rebels Get Enough Support to Kill Starmer’s Welfare Cuts
Over 100 Labour MPs have signaled they will oppose the government’s £5 billion cut to disability benefits, enough to block the welfare bill in Parliament. (bloomberg.com, bloomberg.com)
Insight
The rebellion reflects deep unease within Labour over austerity measures perceived to harm vulnerable individuals, threatening to undermine Starmer’s domestic agenda and test his leadership strength.
UK commits to NATO 5% spending target: Starmer
Prime Minister Starmer pledged that the UK will aim to spend 5% of GDP on defense and security by 2035, combining 3.5% on core defence and 1.5% on resilience.
Insight
This marks a significant escalation in UK defense commitment, intensifying pressure on future budgets and potentially necessitating tough trade-offs or new revenues to support national security aims.
Sweden cuts 2025 growth forecast again due to global uncertainty
The Swedish government cut its GDP growth forecast for 2025 to 0.9% from 1.8%, citing global trade tension and economic uncertainty, while projecting a stronger 2.6% growth in 2026.
Insight
The downgrade reflects the drag from external headwinds on domestic momentum, prompting policy focus on defense spending rises and central bank potential rate cuts ahead to support recovery.
