UK's Modest Recession Likely Over, Bank of England Signals Recovery

Interest rate cuts expected later this year as signs of economic upturn emerge, despite a recent mild recession.

The Bank of England indicates the UK's recent recession is modest and likely over, with signs of economic recovery already visible.
Interest rate cuts are anticipated later this year, with the Bank of England's main interest rate currently at a 16-year high of 5.25%.
Inflation is expected to hit the Bank's 2% target in the spring before rising again due to higher energy costs.
Goldman Sachs forecasts five consecutive 25 basis point interest rate cuts this year, predicting a more rapid policy easing than market expectations.
The UK's economic downturn in the second half of 2023 was the weakest since the 1970s, with a cumulative GDP reduction of only 0.5%.