UK Economy Ends Technical Recession with Strong Growth in Q1; Bank of England Governor Suggests Rate Cut to Boost Expansion

The UK economy has shown strong growth in the first three months of the year, marking the end of what economists called a “technical recession”. Official data from the Office for National Statistics reveals that the economy grew by 0.6% in the first quarter, beating the 0.4% growth expected by economists. This positive recovery comes after two consecutive quarters of modest declines, indicating broad-based strength across a range of sectors.

Despite this growth, overall economic expansion has been sluggish over the past year due to high interest rates that have remained at 5.25%, which is the highest in 16 years. Bank of England Governor Andrew Bailey has suggested that a rate cut could be implemented in June if inflation continues to fall, which may help boost economic growth and curb the dampening effect of high interest rates on borrowing costs.