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UK Economic Weakness Spurs Rate Cut Speculation Amid Stagnant GDP

UK Economic Weakness Spurs Rate Cut Speculation Amid Stagnant GDP

Published:
2025-12-12 21:41:02
28
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BTCCSquare news:

The UK economy faces renewed challenges as GDP contracts unexpectedly, fueling debates over monetary policy adjustments. Recent data shows a 0.1% decline in both quarterly and monthly outputs, extending a trend of stagnation since early summer. Services and construction sectors dragged on performance, while manufacturing failed to offset losses.

Markets now price in higher odds of Bank of England rate cuts, despite earlier Optimism about gradual recovery. The timing proves delicate, coinciding with budget preparations and heightened scrutiny of policy credibility. Investors globally monitor the implications for risk assets, including cryptocurrencies, as fiat currency uncertainties persist.

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