IMF lifts UK growth outlook, but warns AI could crash markets – City sips tea in disbelief

The IMF raised its forecast for UK economic growth in its latest Global Financial Stability Report, giving the Chancellor a modest boost in optimism.

In the same breath, the report warned that a sudden AI‑driven share‑price crash could ripple through global markets, posing a risk to financial stability.

City traders, ever fond of a cuppa, took the mixed message in stride, joking that they might need to watch their tea kettles as closely as their algorithms.

Analysts suggest the safest hedge for now is a good sense of humour, because while AI may wobble markets, it can’t steal a proper British brew.

The dual message leaves the City buoyed by the brighter growth outlook yet wary of the AI spectre – a combination that feels like a morning meeting with strong coffee and a mysterious agenda.