MNI BRIEF: UK Misses Technical Recession As Data Revised Lower

The UK narrowly avoided a recession across the summer months as the Office for National Statistics revised to GDP data for Q2 and Q3 lower to 0% and -0.1% respectively -- the revised Q2 data came in at +0.04%, just on the positive side of zero.

The data was lower than expected by the Bank of England and City analysts, and again raises fears of a sharply slowing economy as higher interest rates high home. However, the BOE's MPC will see the data broadly in line with its thinking of a flatlining economy, even if slightly below the actual expectation.

The Bank of England has maintained talk that rates will need to be held at current levels for some time to tame inflation further, but the latest pricing in the financial markets points to rate cuts totalling 125bps through 2024.