0702 GMT - The U.K.'s fall in GDP is one more piece of news pointing to a Bank of England interest-rate cut in August, Capital Economics' Paul Dales says in a note. The 0.3% decline in April supports the view that the 0.7% rise in the first quarter was unsustainable, he says. However, 2Q could overstate the weakness, allaying fears of a recession. Still, the economy will be held back by subdued overseas demand amid new tariffs and domestic businesses cutting back on spending to compensate for the rise in costs driven by April's tax increases, Dales says. That won't yet be enough to prompt the BOE to cut next week, he adds. (edward.frankl@wsj.com)

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June 12, 2025 03:02 ET (07:02 GMT)

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