British economy unexpectedly grows by 0.2% in second quarter largely because of June weather boost

Given that July was one of the wettest ever, there are widespread expectations that those businesses benefiting in June will see a reverse.

Over the past few months, the British economy has proven slightly more resilient than anticipated in the face of rising interest rates, with a widely predicted recession avoided.

Earlier this month, the Bank of England raised its benchmark interest rate to a fresh 15-year high of 5.25% and hinted that it would stay high for some time to bring down persistently high inflation, However, there are hopes, certainly among hard-pressed households, that the bank will not end up raising its main rate up to 6% as inflation is finally falling back towards the bank’s 2% target. Figures for June showed that inflation fell more than anticipated to 7.9%, easing the pressure to act as aggressively again.

Central banks around the world have been raising borrowing costs to combat inflation unleashed by higher energy prices after Russia invaded Ukraine and supply chain backups as the global economy recovered from the coronavirus pandemic.