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Sterling Sinks as UK Economy Shrinks More Than Expected in July

  • Sterling dipped against the dollar as UK economy shrank 0.5% in July, more than expected.

  • Contraction was largest drop in monthly output since December 2021.

  • Strikes, poor weather weighed on output in July.

  • Bank of England has raised rates 14 times since Dec 2021 to 15-year high of 5.25%.

  • Market pricing for terminal rate has come down to around 5.6% from over 6%.

reuters.com
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