News in Review Wednesday 17th December 2025

This week’s News in Review reveals GDP shrank in October, hit by falling production and Budget uncertainty. With inflation easing and growth stalling, expectations are rising for a Bank Rate cut this week, while mortgage lending shows renewed momentum.

Key takeaways:

  • UK GDP contracted unexpectedly in October, reflecting production declines, construction weakness and businesses delaying decisions pre-Budget
  • Budget measures may ease inflation from April 2026, while economists anticipate a Bank Rate cut to support growth
  • Mortgage lending surged in Q3, with higher loan-to-value borrowing reaching levels last seen before the financial crisis