High inflation coupled with high interest rates, economists predict that the British economy will lose momentum.

　　According to a Bloomberg survey of economists, most respondents expect the UK's (GBR) growth to lag further behind other major economies next year at just 0.6 per cent, a sharp downward revision of 0.3 percentage points from the previous survey. Revealing the prospect of a faltering recovery under the weight of high inflation and interest rates, at least respondents expect Britain to avoid a prolonged recession.

　　Meanwhile, economists raised their estimate for fourth-quarter inflation by 0.2 percentage points to 4.8 per cent. It is not expected to be until 2025 that inflation will fall back to 2%, the Bank of England's (BoE) target.

　　With inflation the highest among major Western economies, economists expect the central bank to eventually raise rates to 5.75 percent this cycle, 75 basis points higher than the current level. The market expects a terminal rate of more than 6%.

　　Sanjay Raja, senior economist at Deutsche Bank, said: "After exiting recession in the first half of 2023, the UK is likely to lose momentum. In an environment where inflation remains stubborn, expectations of higher interest rates will continue to hit households and businesses."