The economy of the United Kingdom shrank in October, sparking concerns of a recession as the central bank is expecting to maintain monetary policy at 15-year high amid high inflation.
Gross domestic product (GDP) in Britain fell by 0.3% from September, according to an official data from the Office for National Statistics on Wednesday, which was worse than the flat growth expected by Reuters poll. This was also the first time since July this year that GDP had shrunk on a monthly basis.
The Bank of England is widely expected by the market to hold an interest rate at 5.25% at the upcoming meeting on Thursday. The central bank had been signalling that there was no plan of cutting rates as it tried to bring down the stubbornly high inflation rate from 4.6% in October.
The market is expecting to see a first rate cut by the Bank of England in June 2024.
