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The closure of the road to lean against the wall near the Royal Stock Exchange in the heart of the London city on June 13, 2022 in London, England.
Richard Baker | In the pictures Gets the image
The UK economy has registered zero growth in July, according to the latest data from the UK by national statistics on Friday.
Economists interviewed by Reuters expected the country’s gross domestic product (GDP) would be equal after 0.4% expansion in June.
This happens after the economy has grown Better than is expected 0.3% In the second quarter, although this decreased from the growth of the bumper by 0.7% in the first quarter.
In July, the weakness was concentrated in production, which decreased by 0.9%, while services and construction products increased higher.
Economists are now expected to slow the UK coast in the second half of 2025.
“After the stronger second quarter, when the UK stated the fastest growth rate among the G7 economies, all signs indicate slowing economic activity in the second half of the year,” said Sanji Raja, the chief economist of Deutsche Bank.
“The correction of the course in trade, reserves, pure acquisitions of precious metals and costs for the public sector, we believe, will see that GDP growth is slowing in the second half of 2025,” he added in the comments by email.
Headache for the Bank of England
Economic slowing will add to the current dilemma of the Bank of England as it weighs sticky inflation (which in July grew to hotter than 3.8% expected), with Autumn budget of November 26In which Chancellor Rachel Riviz will reveal his financial plans for 2026.
“Inflation resistance obviously makes it difficult to reduce the central banks,” said Fabio Balboni, Senior European Economist HSBC last week.
“Then, on the other hand, you have fiscal problems, still a very large fiscal deficit, such as in the UK, with a very difficult solution that is emerged for the government in the autumn budget,” Balboni added.
The Bank of England should meet in the meantime September 18, but as expected the reduction of them in August.
Then the Bank’s monetary policy committee voted in the bank’s most 5-4 to reduce the key interest rate, the banking rate, by 25 basic points to 4%, saying that it accepts a “gradual” approach to weakening cash.
The Central Bank’s meeting is now on November 6, especially when it goes only before the budget.
“We are still expecting that the rate is declining in November, although the hustle and the August decision weakened our conviction,” said Karsten Brzeska, head of the world Macro in Ing on Thursday.
