HSBC cut its UK 2027 GDP forecast to 1.1% from 1.4% at the start of the year and
from 1.2% in August, citing high inflation and elevated interest rates weighing
on consumer spending and the housing market. In its baseline scenario HSBC now
expects unemployment to rise to 5.2% versus a prior 4.7% forecast. The revision
comes a day before Chancellor John Healey's budget; markets expect measures
targeting bank profits, including a proposal to raise the bank surcharge on
corporation tax from 3% to 8%.
