RLAM: UK GDP

Ian Kernohan, Economist at RLAM, comments on UK GDP: “Despite signs of weakness in the housing market, the UK economy continues to grow at a fairly rapid rate.

There will be suggestions that because today’s GDP figure has surprised on the upside, the MPC will have to go beyond 6%, however there’s an awful lot of tightening in the pipeline that has still to come through and once it does, the economy will respond by slowing down. The hawks will vote for a rate rise in August, but a majority on the MPC will prefer to wait a little longer, mindful that the pain of previous rises has yet to hit the consumer”.