The British economy contracted more than expected in October as high borrowing costs began to weigh heavily on activity…
(Boursier.com) — The British economy contracted more than expected in October as high borrowing costs began to weigh heavily on activity across the Channel. GDP fell 0.3%, its first decline since July after a 0.2% gain in September, the National Statistics Office said. Economists expected a decline of 0.1%. The figures reinforce fears that Britain will find itself stuck in long-term stagnation. With the full impact of the Bank of England’s interest rate hikes just beginning to be felt, the economy is expected to make a small gain in the fourth quarter at best, with some even predicting the start of a mild recession. The BoE expects almost no growth next year, while the Office for Budget Responsibility is a little more optimistic with a forecast of 0.7%. The BoE is expected to maintain its benchmark index at 5.25% on Thursday, its highest level in 15 years.
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