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Sofiaa - GBPUSD: GDP decline and consequences
GBP/USD fell 0.3% to 1.2452, with the pound hit by news that the UK economy contracted by a larger-than-expected 0.5% in July, the biggest drop of the year today, instead of the monthly decrease of 0.2% as predicted.
Data showed all major sectors of the economy - services, manufacturing and construction - fell in July.
The Bank of England is still tipped for 14 more interest rate hikes from the end of 2021 when its policymakers meet next week, raising rates from 5.25% to 5.5% .
The economy has not entered recession as feared, wage growth shows few signs of slowing and official statisticians have upgraded strong data to show the UK has recovered from COVID-19 sooner compared to previous thinking.
Data showed all major sectors of the economy - services, manufacturing and construction - fell in July.
The Bank of England is still tipped for 14 more interest rate hikes from the end of 2021 when its policymakers meet next week, raising rates from 5.25% to 5.5% .
The economy has not entered recession as feared, wage growth shows few signs of slowing and official statisticians have upgraded strong data to show the UK has recovered from COVID-19 sooner compared to previous thinking.
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