UK economy defies expectations

Podcast: Walker Crips' Market Commentary · Walker Crips Investment Management Limited

Opublikowano: 2026-08-18

Last week, Bank of England policymakers faced renewed monetary tightening expectations, especially as Chief Economist and Monetary Policy Committee member Huw Pill voted for rate hikes in four consecutive decisions, arguing that resilient quarterly growth of 0.4% in June supports higher interest rates. While Bank of England Governor Andrew Bailey had previously downplayed the possibility of rate cuts, comfortable leaving rates on hold, money markets now fully price further increases and anticipate upcoming hikes if oil prices continue to rise. UK Gross Domestic Product surprised on the upside in June by expanding 0.3% against expectations for a 0.1% contraction. This performance was...