Q3 GDP Results - QoQ: Rose by 0.1% (below the forecast of 0.2%). - YoY: Increased by 1.0% (above the expected 0.1%). - September GDP: Declined by 0.1% MoM and 1.0% YoY, missing estimates of 0.2% MoM and 1.1% YoY.
Economic Pressures - A sharp increase in the tax burden on businesses, announced by Chancellor Rachel Reeves, is straining the economy. - September industrial production dropped by –0.5% MoM (forecast: 0.1%) and by –1.8% YoY (forecast: –1.2%).
Monetary Policy Outlook
- The Bank of England may consider accelerating monetary easing to support growth. - However, divergence exists within the board. Catherine Mann advocates maintaining current interest rates until inflation risks, including political uncertainties like Donald Trump’s potential election as US President, subside.