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.
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.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
The UK economy expanded by 0.3% in Q2 2025, outpacing expectations and easing recession fears.
The pound strengthened this week as traders priced Fed easing and reassessed BoE cuts after resilient UK growth.
Surveyors reported improved buyer enquiries and stabilising prices in July, hinting that BoE easing is feeding through.
UK stocks hit new highs as investors shake off trade worries; inflation and unemployment rise.
FX markets eyed UK jobs and pay data after the BoE’s split cut, with sterling consolidating recent gains.
The Bank of England reduced rates by 25bp to 4.0%, with a closely divided MPC underscoring policy uncertainty.
BoE reduces rates as UK inflation spikes to 3.5%, signaling confidence in falling prices ahead.
Business leader optimism in the UK economy has fallen to its lowest level since records began in 2016.
Londoners are purchasing the lowest proportion of houses outside the capital in over a decade due to stalling local prices and the shift back to office working.
FTSE 100 property developer Berkeley Group has warned of a housing slowdown in London, forecasting further decline unless the government addresses regulatory and tax hurdles.
Amazon offers 45% discount on L'Oreal Paris Laser Renew Anti-Ageing Triple Action Eye Cream.
UK borrowing costs for 30-year debt reached 5.72%, a 27-year high, raising fears of economic decline.
Poundland plans to close up to 68 stores in 2025 following financial difficulties and restructuring.
Chancellor Rachel Reeves announced the autumn budget for November 26, aiming to address a £30 billion deficit with growth measures.
Financial expert Martin Lewis has issued a strong warning against criminals who use his name and deepfake technology in 'disgraceful' online adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
The Powerball jackpot has soared to an estimated $1.3 billion, the fifth-largest in the lottery's history, after no winning ticket was sold in the latest drawing, marking the 41st consecutive drawing without a winner.
The UK's long-term borrowing costs have reached a 27-year high, fueling speculation about the government's economic credibility and the future of Chancellor Rachel Reeves following a significant government reshuffle.
Experts caution that Premium Bonds winnings may lead to unexpected tax bills depending on how they’re used.
McVitie’s introduces a new caramel-flavoured Penguin biscuit available in major UK supermarkets just in time for autumn.
Despite a wider trend of decreasing car insurance premiums in the UK, a new report indicates that prices for drivers under the age of 25 have seen a recent increase.
A major government reshuffle has fueled speculation about the future of Chancellor Rachel Reeves as the UK's long-term borrowing costs reach a 27-year high amidst broader European economic uncertainty.
The Powerball jackpot has skyrocketed to an estimated $1.3 billion after no one won the top prize in the latest drawing, marking the 41st consecutive drawing without a winner and setting up the fifth-largest jackpot in the lottery's history.
Greggs has introduced a £5 meal deal nationally along with new autumn-inspired menu items including Chicken Fajita Bake and Pumpkin Spice specials.
Financial expert Martin Lewis has issued a powerful warning against online criminals who use his name and deepfake technology in 'disgraceful' adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
New data reveals councils increasingly use one-off cash incentives to persuade private landlords to accept homeless households, costing taxpayers millions.
Councils are spending millions placing homeless families in hotels due to housing shortages, raising questions about long-term policy failures.
