Likely emergence from recession eases pressure on the Bank of England for early rate cut
13 March 2024
The technical recession the UK experienced in the second half of last year has seemingly ended, according to January’s Gross Domestic Product (GDP) print which saw the economy grow by 0.2% over the month. It will be welcome news to the government who have faced a litany of bad polling numbers and general negative news flow but the momentum of the economy is still pretty weak. The Bank of England will feel less pressure to cut rates urgently if the economy is growing and the ‘higher for longer’ rate narrative keeps getting more obvious as time goes by.
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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.