British Pound: BoE hawks get support from UK data – Rabobank

Rabobank strategist Elwin de Groot observes that stronger-than-expected UK GDP has provided fresh ammunition to Bank of England (BoE) hawks, even as the Bank remains reluctant to tighten further. Growth was broad-based, with investment and GDP per capita both rising. Rabobank's UK strategist Stefan Koopman warns that Britain often posts strong first halves followed by weaker second halves, making 2026’s pattern a key question.

Robust GDP challenges BoE caution

"Even in the UK, where the Bank of England remains reluctant to tighten further, yesterday's stronger-than-expected GDP data provided ammunition for the hawks."

"Growth was broad-based, investment contributed positively and GDP per capita rose by a healthy 0.4% q/q."

"As our UK strategist Stefan Koopman notes, however, caution is warranted."

"Britain has developed a habit of strong first halves followed by disappointing second halves."

"The key question is whether 2026 finally breaks that pattern."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)