British Economy Rebounds from Technical Recession, But Sluggish Growth Continues Despite Rate Cuts Possibility

The British economy has shown strong growth in the first three months of the year, ending a “technical recession” that had been predicted by economists. According to figures from the Office for National Statistics, the economy expanded by 0.6% in the first quarter, surpassing the 0.4% increase predicted by experts. This growth was seen across various sectors, indicating broad-based strength.

Despite this positive rebound, overall economic expansion has been sluggish over the past year due to high interest rates that have remained at 5.25%, the highest in 16 years. Bank of England Governor Andrew Bailey has suggested that a rate cut could be implemented in June if inflation continues to decline. While high interest rates have helped curb inflation, they have also increased borrowing costs and had a dampening effect on the British economy.