UK economy's surprise strength puts more Bank of England rate hikes on table

The central bank itself had pencilled in growth of 0.1% for the second quarter

The strong showing bolstered bets that the BoE would keep on raising interest rates, given the central bank stressed this month that resilience in the economy was one of the factors that would underpin its judgement. Picture date: Thursday June 22, 2023.

Britain's economy eked out unexpected growth in the second quarter, laying the ground for more interest rate hikes from the Bank of England, but it remained the only big advanced economy yet to regain its pre-covid, late-2019 level.

Official data on Friday showed the economy grew 0.2% in the second quarter, against the consensus for a flat reading in a Reuters poll of economists. The figures sent the pound sharply higher against the US dollar and euro.