Strong U.K. 1Q Growth May Stay BOE's Hand Despite Coming Headwinds -- Market Talk

Dow Jones

2025/05/15

0756 GMT - A strong start to the year for the U.K. economy could delay the next cut to interest rates from the Bank of England as the central bank concentrates on inflation concerns, says Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales. The 0.7% increase in GDP in the quarter through March was a better result than expected. However, this was likely due to one-off factors such as tariff front-running, and probably marks "the pinnacle for economic growth this year," Thiru says. Activity is set to slow amid tariffs, tax rises and increased uncertainty, he says. (joshua.kirby@wsj.com; @joshualeokirby)

(END) Dow Jones Newswires

May 15, 2025 03:56 ET (07:56 GMT)

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