City bets on fresh Bank of England interest rate hike as GDP leap beats forecast
City markets were pricing in another interest rate price hike today after stronger than expected economic growth in June sent gilt yields higher.GDP grew 0.5% in the month, a level not bettered since October 2022, against City forecasts of around 0.3%. Economists said the growth was flattered by a bounce-back from May, which lost a day’s output to the extra Bank Holiday for the King’s Coronation, but nonetheless pointed to a resilient economic performance.