Stronger-than-expected UK growth data fuels speculation of further Bank of England tightening, despite policymakers’ reluctance.
UK GDP data exceeded expectations, providing support for Bank of England hawks advocating further monetary tightening. Growth was broad-based, with investment and GDP per capita rising 0.4% quarter-on-quarter.
The print contrasts with the BoE’s cautious stance, though historical trends show Britain often experiences strong first halves followed by weaker second halves. Analysts question whether 2026 will break this pattern.
Markets are reassessing rate-hike probabilities, though no immediate policy shift has been signaled by the central bank.