U.K. Economy Contracts Again, Likely Cementing BOE Rate Cut

The Wall Street JournalFriday, December 12, 2025 at 8:36:00 AM
U.K. Economy Contracts Again, Likely Cementing BOE Rate Cut
  • The U.K. economy contracted by 0.1% in October, defying expectations of growth, as reported by The Wall Street Journal. This decline marks a continuation of a downward trend, with GDP growth remaining weak at 1.1% over the past year, raising concerns about the overall economic stability in the region.
  • This contraction is significant for the Bank of England (BOE), as it likely solidifies the case for a rate cut to stimulate economic activity. The BOE's monetary policy decisions will be closely watched as they respond to these economic indicators.
  • The situation in the U.K. reflects broader economic challenges faced by other regions, such as stagnant retail sales in the Eurozone and declining consumer confidence in the U.S. These interconnected issues highlight a cautious global economic environment, where consumer spending remains critical for recovery.
— via World Pulse Now AI Editorial System

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