India News Reporter International Desk: Across the pond in England, the Bank of England is sounding alarms on stubbornly high inflation, even as new mandates force landlords to combat damp and mould in social housing a policy igniting both hope and backlash. With the October 7 anniversary of the 2023 Israel attacks fueling nationwide pro-Palestine protests, Prime Minister Keir Starmer’s Labour government faces a multifaceted crisis: economic fragility, social unrest, and the weight of global geopolitics. As the US basks in its Middle East ceasefire glow, Britain’s challenges underscore a transatlantic divergence in post-pandemic recovery.
Bank of England Deputy Governor Catherine Mann delivered the starkest warning yet Thursday, telling a parliamentary committee: ‘We’re not there yet on inflation expectations.’ Despite base rates holding at 5.25% unchanged since August underlying inflation ticked up to 2.2% in September, per Office for National Statistics data, driven by food and energy spikes.
Mann’s comments dashed hopes for a rate cut this month, with markets now pricing in a mere 25% chance for November. The Bank’s revised 2025 growth forecast, slashed from 1.5% to 0.75%, paints a picture of stagnation, compounded by Brexit’s lingering trade frictions and sluggish consumer spending.
Compounding the gloom, new regulations kicked in this week, mandating landlords in England to investigate and remediate damp and mould in social housing within strict timelines fines up to £30,000 await non-compliance. The policy, a flagship Labour pledge, stems from the tragic 2020 death of two-year-old Awaab Ishak in a mould-ridden Rochdale flat, sparking a national scandal.
Housing Secretary Angela Rayner hailed it as ‘a turning point for vulnerable families,’ estimating it affects 2.5 million social homes. Tenant advocacy groups like Shelter praised the move, but the National Residential Landlords Association decried it as ‘unfunded burdens,’ warning of rent hikes and evictions.
The reforms landed amid heightened tensions from pro-Palestine demonstrations marking the second anniversary of the October 7 attacks. Thousands marched through London Saturday, waving flags and chanting ‘Free Palestine,’ despite Starmer’s plea to cancel the ‘un-British’ rallies out of respect for victims. Similar sit-ins gripped university campuses in Glasgow and Edinburgh, with organizers from Palestine Action vowing ‘we’re not afraid’ in the face of counter-protests mourning the 1,200 Israelis killed.
Police reported 15 arrests in London for public order breaches, but no major violence. Starmer, facing internal Labour rifts over Gaza policy, reiterated support for the US-brokered ceasefire: ‘Peace demands restraint from all sides protests must remain peaceful.’
On the international front, Azerbaijan’s state oil fund SOFAZ announced a £52 million ($66 million) stake in London’s Gatwick Airport, signaling confidence in UK infrastructure despite economic headwinds. In sports, new England manager Thomas Tuchel celebrated a 3-0 friendly thrashing of Wales, lauding goalkeeper Jordan Pickford’s record eighth clean sheet: ‘Fantastic resilience.’
Yet, broader woes persist: Cyberattacks hit luxury retailer Harrods this week, exposing data vulnerabilities, while the Office for National Statistics reported a 0.1% economic contraction in January echoing manufacturing slumps.
As England navigates these storms, analysts eye the IMF’s forecast of three rate cuts by year-end as a potential lifeline. For Indian expats and investors in the UK numbering over 1.8 million these shifts could ripple into remittance flows and bilateral trade, already buoyed by recent UK-India FTA talks. India News Reporter’s London correspondent reports growing calls for fiscal stimulus to avert recession.
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