The UK economy continued to rebound cautiously from a recession. GDP grew by 0.6% q/q in 2Q24, after rising by 0.7% q/q in 1Q24. This was in line with consensus expectations, but a tad lower than the Bank of England (BOE)’s forecast for a 0.7% gain, UOB Group economist Lee Sue Ann notes.
Economy continues to recover
“The UK's economy grew by 0.6% between Apr and Jun as it continued its recovery from the recession at the end of last year. The latest figure was in line with forecasts and follows a 0.7% increase in the first three months of this year.”
“Annual CPI inflation rate rose to 2.2% in Jul, its first acceleration since Dec last year, and is expected to remain above its 2% target for the rest of the year. Separately, unemployment fell unexpectedly after companies stepped up hiring.”
“We see a rate hold at the next BOE meeting on 19 Sep, and another rate cut at its 7 Nov meeting, on the premise that data on services inflation and wage growth will soften in the coming months, making the committee more comfortable with proceeding with one more cut this year.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The hunt for 0.6800
![AUD/USD: The hunt for 0.6800](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/hundred-bucks-3645622_XtraSmall.jpg)
AUD/USD extended its strong uptrend and reclaimed the area beyond the key 0.6700 barrier to print fresh five-week highs ahead of the release of the RBA Minutes.
EUR/USD clinches 2024 highs and retargets 1.1100
![EUR/USD clinches 2024 highs and retargets 1.1100](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/world-currencies-53475296_XtraSmall.jpg)
EUR/USD rose to levels last seen in late December 2023 and approached the key 1.1100 hurdle, always on the back of the incessant selling pressure in the US Dollar prior to the FOMC Minutes and Powell’s speech at Jackson Hole.
Gold stable above $2,500 and looking for fresh record highs
![Gold stable above $2,500 and looking for fresh record highs](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
The persevering sell-off in the greenback, coupled with lower US yields and hopes of an interest rate cut by the Fed in September, all prompt Gold prices to dispute their record high past the $2,500 mark per ounce troy.
XRP Ledger transactions dropped to nearly a sixth of their value this year
![XRP Ledger transactions dropped to nearly a sixth of their value this year](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Watch_XtraSmall.jpg)
Ripple trades at $0.5833 on Monday as the altcoin extends gains and recovers from the crypto market crash in early August. The Ripple stablecoin announcement, the Securities & Exchange Commission vs. Ripple lawsuit ruling and recent research reports published by SBI-owned HashHub are the key market movers for the altcoin this week.
International economic outlook
![International economic outlook](https://editorial.fxstreet.com/images/Macroeconomics/Countries/dotted-world-map-and-businessman-gm468917358-62044988_XtraSmall.jpg)
We have not made material forecast changes to our economic or inflation outlooks. This month, we continue to forecast 2024 global GDP growth of 2.9% and global CPI inflation of 3.6%. In the United States, we maintain our view for a “soft landing” although acknowledge that recession risks are rising.