Interest rate cut next week ‘nailed on’ as UK economy grows just once in seven months
Experts predict interest rate cut after economy shrinks again
- The UK economy unexpectedly contracted by 0.1 per cent in October after a similar decline in September, marking only one month of growth in the last seven.
- The surprise contraction has led experts to predict a pre-Christmas interest rate cut by the Bank of England to 3.75 per cent is now highly likely.
- Pre-Budget concerns and widespread speculation about potential tax hikes are largely blamed for paralysing economic activity across key sectors.
- A partial recovery in car manufacturing, notably from Jaguar Land Rover after a cyber attack, was insufficient to prevent the overall economic shrinkage.
- Economists warn that the 'wait-and-see mode' adopted by households and businesses due to Budget speculation could mean November's GDP figures will also be subdued.