Reaction to UK GDP (13/06/22)
by Shafiq Shabir
Head of Electronic Trading, Intertrader
Few people would disagree that the first half of 2022 has been characterised by an onslaught of negative economic news, and today’s GDP figures (down 0.3% in April) only add to that narrative.
The cost-of-living crisis is clearly taking its toll on consumers, depressing economic growth, and we are even seeing signs of the housing market coming off the boil as interest rates rise. With consumer confidence levels at a record low, there is mounting pressure for even more government intervention – despite the chancellor’s windfall tax U-turn back in May.
With economic growth grinding to a halt and inflation continuing to spiral, stagflation is the watchword of 2022. In this context, the deliberations at Threadneedle Street will be all the more intense as to whether they implement the 25bp interest rate rise markets have already priced in.
Published: 13 June 2022
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