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flag UK's sluggish economy and cut growth forecasts alarmed bond investors, sparking market tensions.

flag Britain's economic growth concerns are alarming bond investors, with the economy expanding just 0.1% in Q4 2024 and declining in January. flag The Bank of England cut its 2025 growth forecast to 0.75%, and the OECD downgraded Britain's prospects, predicting UK interest rates to fall. flag Market tensions include a recent bond and sterling selloff, and fears over public finances could trigger another market shock. flag Investors prefer spending cuts over tax hikes to address the fiscal issues.

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