British Pound: BoE hawks get support from UK data – Rabobank
Rabobank strategist Elwin de Groot observes that stronger-than-expected UK GDP has provided fresh ammunition to Bank of England (BoE) hawks, even as the Bank remains reluctant to tighten further. Growth was broad-based, with investment and GDP per capita both rising. Rabobank's UK strategist Stefan Koopman warns that Britain often posts strong first halves followed by weaker second halves, making 2026’s pattern a key question.
Robust GDP challenges BoE caution
"Even in the UK, where the Bank of England remains reluctant to tighten further, yesterday's stronger-than-expected GDP data provided ammunition for the hawks."
"Growth was broad-based, investment contributed positively and GDP per capita rose by a healthy 0.4% q/q."
"As our UK strategist Stefan Koopman notes, however, caution is warranted."
"Britain has developed a habit of strong first halves followed by disappointing second halves."
"The key question is whether 2026 finally breaks that pattern."
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