UK Economy Exceeds Forecasts with 0.4% Growth in July, Driving Expectations for Further Rate Hikes

The UK economy expanded by 0.4% in July 2026, surpassing expectations for stagnation. This growth was primarily fueled by increases in the services, production, and construction sectors. Following this stronger-than-anticipated performance, financial markets are now pricing in expectations for four quarter-point interest rate increases by the Bank of England by July 2027.