Bank of England Unlikely to Hike Rates in September Despite Strong 2Q GDP
Dow Jones
Aug 13
0812 GMT - A Bank of England interest-rate hike in September is unlikely given the robust economic growth in the second quarter was driven by temporary factors, ICAEW chief economist Suren Thiru says. That included stockpiling drive by the start of the Iran war, unusually warm weather and the soccer World Cup, rather than genuine momentum, he says. Indeed, the 0.4% rise in second-quarter GDP is expected to by followed by a more painful deceleration in the third quarter, as the squeeze on household incomes from higher inflation and energy costs increasingly stifle growth, Thiru says. "The chances of a September rate hike remain slim, given expectations that softer economic activity in the months ahead will ultimately help contain inflation."
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.