UK Economy Surprise: Strongest Growth in More Than a Year

The UK economy showed unexpected resilience due to the absence of a bank holiday and favorable weather, benefiting Prime Minister Rishi Sunak's economic goals. However, persistent inflation suggests more interest rate hikes by the Bank of England, affecting market dynamics. Future economic projections indicate unchanged rate hike expectations but reduced rate cut bets for 2024, with inflation and job numbers being crucial indicators.

What factors contributed to the UK economy's resilience in the recent period?

• A decrease in inflation

• Increased government spending

• A new trade agreement

• Absence of a bank holiday and hot weather

Why is persistent inflation a concern for the UK economy?

• It reduces consumer spending

• It results in more interest rate hikes

• It causes the pound to lose value

• It leads to higher unemployment

What was the initial market reaction to the Bank of England's decision?

• Yields decreased significantly

• The pound fell sharply

• The pound rose and then adjusted

• Gilts increased in value

What has changed in market bets following the recent GDP print?

• Lower expectations for inflation

• Higher expectations for economic growth

• Decreased expectations for rate cuts in 2024

• Increased expectations for rate hikes

Which numbers are considered crucial for future economic decisions?

• Trade balance and export numbers

• Inflation and job numbers

• Consumer confidence index

• Retail sales figures