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[UK CBI Raises 2026 Economic Growth Forecast, Says Central Bank Has Only Two More Rate Cuts] 1. The Confederation of British Industry (CBI), a major UK business lobbying group, raised its economic growth forecasts for the next two years on Friday. The organization noted that this was mainly due to a temporary boost from government spending following the new budget, but warned that the UK economy still faces deep-seated problems, and the growth outlook is only "cautiously optimistic" rather than "worthy of celebration." 2. According to the latest forecast, the CBI expects the UK economy to grow by 1.3% in 2025, up from its June forecast of 1.0%. At the same time, the organization raised its 2024 economic growth forecast from 1.2% to 1.4%. These adjustments reflect recent upward revisions in official data and are largely in line with the estimates of major institutions such as the International Monetary Fund (IMF). 3. CBI Chief Economist Louise Hellham said that while the upward revisions are welcome, the overall atmosphere is more "cautiously optimistic" than "worthy of celebration." She specifically pointed out that while the budget announced by the Chancellor of the Exchequer on November 26th provided room for stabilizing public finances, "no measures were provided to provide a lasting boost to investment and growth," making it overall a budget "more focused on stability than growth." 4. Regarding inflation and interest rates, the CBI predicts that consumer prices will rise by 2.6% next year, slightly higher than the Bank of England's forecast last month. Based on this inflation outlook, the CBI believes that the Bank of England's room for interest rate cuts will be relatively limited, expecting it to only be able to implement one 25 basis point cut each next week and in early 2026, thereby lowering the benchmark interest rate from the current 4% to 3.5%. This expectation is more restrictive than the market consensus.