In today’s briefing:
- UK: Output Brushes-Off Covid in Jan-22
UK: Output Brushes-Off Covid in Jan-22
- UK GDP rebounded by 0.8% m-o-m to reach a record high level in Jan-22. Activity broadly brushed off the lingering covid restrictions.
- We raise our Q1 GDP growth forecast by 0.1pp to 1.1%. Changing to that would be substantial for the BoE (0%) and consensus (0.6%), supporting another rate hike.
- Growth slows more later in our forecast as the real income squeeze mounts. Painfully high core inflation underlying that means it is far from a dovish development.
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