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2025-12-12 16:50:03
[Capital Economic Research: Unexpected UK Economic Contraction Strengthens Jokes for Bank of England Rate Cut] ⑴ Capital Economic Research economist Ruth Gregory stated in a report that the unexpected contraction in the UK economy in October strengthened the case for a Bank of England rate cut next week. ⑵ She pointed out that the 0.1% overall economic contraction in October was particularly disappointing, given the modest growth in manufacturing output. Manufacturing rebounded after the Jaguar Land Rover cyberattack in September. ⑶ Gregory stated: "It is noteworthy that the economy has only grown in one of the past seven months. The size of the economy is flat compared to the beginning of the second quarter, and manufacturing output has not exceeded mid-2023 levels." ⑷ She stated that the weak economy, slowing labor market, and declining inflation have strengthened market confidence in a 25 basis point rate cut by the Bank of England on December 18th.
