There was no expansion for the UK economy in July seeing it flatlined at 0%. After positive signs in Q2 for the UK economy, expectations where that the second half of 2025 should start seeing signs of struggle. An offset for both production and manufacturing sectors, raises questions to the government which promised to inject the UK economy and rebuild growth. This leading to concerns for both Bank of England, who meets next Thursday. After their last meeting lowering interest rates from 4.25% to 4% to release pressure on the UK economy, we did see inflation levels in July reach 3.8%. Expectations ahead of its meeting next week is that they will hold the interest rate level at bay of 4%, as an act to control the inflation levels. The second half of 2025 will be very important for the UK economy and GBP, to see how BoE and the government will handle the situation. Chancellor Rachel Reeves is announcing the governments next direction in the end of November and there’s speculations that they will have to raise taxes even further now to balance the economy.
In the start of next week, we will also have job and inflation data being published that will give us an even more detailed situation of the economy’s performance ahead of its meeting. For the following week, we also have the Federal Reserve meeting the day before BoE. In other words there is a big week ahead with central bank meetings taking place.
GBP/EUR 1.1533 GBP/USD 1.3533 GBP/AED 4.9748
GBP/AUD 2.0359 GBP/CHF 1.0782 GBP/CAD 1.8738
GBP/NZD 2.2717 EUR/USD 1.1720 GBP/ZAR 23.5688