24
Sep
The BoE maintains its tight monetary policy stance
Resilient GDP in Q2 (+0.4%). Moderate recovery in services. Employment has stabilized. Confidence is improving. Inflation is picking up again. The BoE is taking a hawkish stance. Bond yields are tight. The pound is strong. The housing market has calmed down.
Key points
- The ONS confirms growth of +0.4% in Q2 2026
- Economy avoids contraction despite the shocks
- Moderate recovery in services PMI
- Labor market stabilizes at 4.9%
- Gradual improvement in consumer sentiment
- Headline CPI inflation picks up again to +3.1% in August
- BoE maintains strict status quo (3.75%) in a split vote (6-3)
- Persistent tensions on sovereign yields
- Interest rate support for the British pound remains
- Direct real estate stabilizes
- “Value” profile protection against high interest rates
