Skip to main content

Economy in brief: July 2025

Alpesh Paleja CBI Deputy Chief Economist

Your monthly guide to the UK economy, giving you a monthly overview of the major trends impacting the UK's main business sectors.

30 Jul 2025, 3 min read

BoE grappling with a difficult trade-off

Incoming data over the past month has continued to paint a familiar picture of the UK economy: weak growth momentum, alongside entrenched underlying inflationary pressure. This combination makes life difficult for the Monetary Policy Committee (MPC), who are having to balance offsetting influences on inflation. It underscores why they have so far been proceeding cautiously with cutting interest rates further.

The labour market is loosening…

On the other side of the coin, the MPC are cl

Exclusive member-only content Exclusive member-only content

Already a member? Sign in
  • Access member-exclusive insights

    Access member-exclusive insights

    CBI members benefit from the latest economic and political intelligence, thought leadership, practical guides and more.

  • Make informed business decisions

    Make informed business decisions

    Scan the horizon and anticipate risks and opportunities - from economic downturns to policy change - with expert intelligence you won't find elsewhere.

  • Gain ideas and inspiration

    Gain ideas and inspiration

    Share challenges, exchange ideas and borrow brilliance from a community of business leaders and experts - and grow your profile among peers.

Not a member yet?

Every member matters.
Whatever and wherever your business, no matter how big or small, you can benefit by being a CBI member. With offices, events, and services across the UK, we're here to support you.

Find out more