Published by Global Banking & Finance Review®
Posted on December 13, 2024
1 min readLast updated: January 27, 2026
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The UK economy unexpectedly shrank by 0.1% in October, causing the pound to fall and increasing the likelihood of Bank of England rate cuts.
LONDON (Reuters) - The pound fell on Friday after data showed the British economy shrank unexpectedly in October, which could prompt traders to attach a greater chance to the prospect of speedier rate cuts by the Bank of England next year.
Official data showed UK economic activity contracted 0.1% in October. A Reuters poll of economists had forecast a rise of 0.1% last month, from September's 0.1% fall.
Sterling initially fell as much as 0.3% after the numbers and was last down 0.24% at $1.2642.
(Reporting by Amanda Cooper; Editing by Harry Robertson)
The article discusses the unexpected contraction of the UK GDP in October and its impact on the British pound and potential Bank of England rate cuts.
The pound fell by 0.24% to $1.2642 following the release of the GDP data.
The unexpected GDP contraction may lead traders to anticipate faster rate cuts by the Bank of England next year.
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