0956 GMT - The major beat to U.K. GDP growth expectations increases the risk of a Bank of England interest-rate hike, Berenberg's Andrew Wishart says in a note. Against the pattern of recent years, GDP growth retained momentum into the second half of the year, rising 0.4% in July. However, it also hints that BOE's 3.75% bank rate is not as restrictive as some rate-setters thought, he says. Evidence the economy could cope with a solitary 25 basis-point rate hike adds to the risk the BOE will deliver one in November or December, he says. "However, as the central bank struggles to trust the official GDP data, broader evidence of solid growth would need to follow this strong outturn to convince it," he adds.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.