British GDP growth not pressuring the BoE, say Berenberg
TLT•UK GDP growth rose to 2.1% year over year in August from 1.8% in July, but Berenberg said growth concentrated in two sectors does not require the Bank of England to tighten aggressively. The bank expects one rate hike on November 5, barring a renewed surge in energy prices.
1. Growth remains concentrated
UK GDP growth accelerated to 2.1% year over year in August from 1.8% in July. Berenberg economist Andrew Wishart said the pickup was concentrated in information and communication, and professional, scientific and technical activities.
2. Berenberg rate outlook
Wishart said employment in both sectors has declined since the start of 2025, despite their growth, and that the expansion has not created a broader tightening of the labour market. Berenberg expects the Bank of England to hike once, on November 5, unless energy prices surge again.
