Following the ONS’s Q2 GDP release, several bank economists and think-tanks argued that the stronger-than-expected 0.3% print could slow the pace of additional BoE easing.
The August Monetary Policy Report had pencilled in softer activity, so the upside surprise, coupled with persistent services inflation and still-elevated wage growth, strengthens the case for a pause to assess the effects of prior cuts.
Markets reflected this with a modest trimming of rate-cut pricing for late 2025/early 2026 and a firmer pound.
For households, a slower easing path implies mortgage rates may drift down more gradually, keeping refinancing costs above pre-pandemic norms for longer; for savers, deposit rates may also fall but remain competitive at the top of the tables.
For the Treasury, steadier growth is welcome but does not remove the need for credible fiscal plans.
The analysis aligns with a broader theme across advanced economies: central banks are walking a fine line between supporting activity and ensuring inflation durably returns to target, with data dependence and meeting-by-meeting guidance the dominant communication approach.
The BoE’s split vote epitomises this balance and keeps upcoming inflation and labour-market releases in sharp focus.
2025-08-20 18:39:32
Gold is on track for its strongest annual performance since 1979, with bullion hitting a series of record highs driven by high interest rates, inflation, and increasing geopolitical crises.
2025-09-28 18:14:00
A new survey by the Confederation of British Industry (CBI) revealed that confidence in the UK's services sector has dropped due to persistent cost pressures and weak demand.
2025-08-28 20:00:00
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
2025-08-24 16:33:00
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
2025-08-24 10:10:00
Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
2025-08-20 18:39:32
The pound strengthened this week as traders priced Fed easing and reassessed BoE cuts after resilient UK growth.
2025-08-20 18:39:32
UK stocks hit new highs as investors shake off trade worries; inflation and unemployment rise.
2025-08-20 18:39:32
FX markets eyed UK jobs and pay data after the BoE’s split cut, with sterling consolidating recent gains.
2025-08-20 18:39:32
The Bank of England reduced rates by 25bp to 4.0%, with a closely divided MPC underscoring policy uncertainty.
2025-08-20 18:39:32
BoE reduces rates as UK inflation spikes to 3.5%, signaling confidence in falling prices ahead.
2025-08-20 18:39:32
Business leader optimism in the UK economy has fallen to its lowest level since records began in 2016.
2025-08-20 18:39:32
The Department for Work and Pensions confirms the £150 Warm Home Discount scheme will expand to include Universal Credit claimants from this winter.
2025-10-02 12:31:00
Lender Close Brothers has set aside an additional £33 million to compensate customers for overcharged car loans, marking a fresh blow amid the ongoing investigation into historical mis-selling in the UK car finance market.
2025-10-01 17:36:00
The state pension age is expected to rise again, leaving 1.5 million Britons in 'benefit limbo' who are too young to retire but have lost access to key benefits and tax credits.
2025-10-01 15:11:00
Chinese money launderer Zhimin Qian has been convicted in one of the UK’s largest-ever money laundering cases, bringing an end to a seven-year Met Police investigation into a global scheme to clean illicit cryptoassets by purchasing property.
2025-10-01 14:10:00
A new report has urged the government to accelerate the rise of the state pension age to 68, arguing that the welfare bill is becoming unsustainable and that past governments have 'treated the issue like a hot potato.'
2025-10-01 10:36:00
Asian shares traded in a narrow range as traders prepared for a potential US government shutdown, while Wall Street finished higher, boosted by technology stocks and US interest rate cut expectations.
2025-09-30 19:40:00
Replace bathtubs with groutless showers for easier cleaning, water savings, and timeless design.
2025-09-30 17:58:00
The Jersey Communication Foundation has distributed grants exceeding £23,000 to six local projects, aiming to create a 'level playing field' and tackle social mobility issues in the Teesside community.
2025-09-29 16:55:00
Bullion has hit a series of record highs, putting 2025 on track for gold’s strongest annual performance since 1979, driven by high inflation, interest rate volatility, and escalating geopolitical crises.
2025-09-29 16:45:00
Drivers advised to verify QR codes in car parks to avoid fraudulent payment sites.
2025-09-29 12:38:00
Use lemons, vinegar, and other foods for eco-friendly cleaning, avoiding harsh chemicals.
2025-09-28 19:25:00
US cattle and beef prices have soared to record highs amid tight domestic supply, strong consumer demand, and ranchers’ reluctance to expand herds, with restaurant owners forced to pass on soaring costs to diners.
2025-09-28 19:03:00
Wales’ new Visitor Levy has been signed into law, giving Welsh councils the choice to introduce a tourism tax on overnight stays, with the earliest possible implementation date now set for 2027.
2025-09-28 13:59:00
The Liberal Democrats warn that an estimated 1.3 million people will pay an additional £285 a year in a 'stealth tax' if the chancellor freezes income tax thresholds.
2025-09-23 16:21:00
22% of workers report money worries harming job performance, with 19% taking sick leave due to financial stress, per BSA research.
2025-09-23 13:26:00
BMW sets aside £206.9m for potential car finance mis-selling payouts amid FCA investigation.
2025-09-22 16:47:00
UK housing market sees 2% price drop in Q3 2025, driven by high interest rates and economic uncertainty.
2025-09-22 15:23:00
A three-bedroom house in Nantlle filled with rubbish goes to auction with a £45,000 guide price, requiring full renovation.
2025-09-20 23:40:00
Expert warns of five common central heating errors adding hundreds to UK households' energy bills.
2025-09-20 14:47:00