Resilient U.K. Growth Could Raise Prospect of BOE Rate Rise
Dow Jones
Jul 16
0707 GMT - The U.K. economy grew by 0.1% month-on-month in May, up from a 0.1% contraction in April. This indicates economic resilience, Pantheon Macroeconomics' Rob Wood says in a note. "Output is rising comfortably above the MPC's assumptions, so slack is probably building slowly if at all," he says. The growth raises the possibility of the Bank of England increasing interest rates in the coming months, Wood says. Markets fully price in one quarter-point BOE rate increase in November, LSEG data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
July 16, 2026 03:07 ET (07:07 GMT)
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