THE BOE MAINTAINS ITS TIGHT MONETARY POLICY STANCE 1/3

18 Sep

THE BOE MAINTAINS ITS TIGHT MONETARY POLICY STANCE 1/3

The Office for National Statistics revised U.K. Q2 2026 GDP growth to a solid +0.4%, following a +0.6% expansion in Q1. Over the first half of the year, British economic growth outpaced both the Eurozone and Germany. This performance confirms that underlying private demand absorbed monetary shocks far better than early estimates suggested. The upward revision resolves earlier seasonal adjustment controversies while validating a structural recovery in business services.

Key Points

  • The ONS confirms growth of +0.4% in Q2 2026
  • Economy avoids contraction despite the shocks
  • Moderate recovery in services PMI
  • Labor market stabilizes at 4.9%
  • Gradual improvement in consumer sentiment
  • Headline CPI inflation picks up again to +3.1% in August
  • BoE maintains strict status quo (3.75%) in a split vote (6-3)
  • Persistent tensions on sovereign yields
  • Interest rate support for the British pound remains
  • Direct real estate stabilizes
  • “Value” profile protection against high interest rates