Team Blitz India
LONDON: Raising the risk of recession, official data showed that Britain’s economy shrank in the month of October. It was set to test the Bank of England’s resolve to stick to its anti- inflation line against cutting interest rates.
The Office for National Statistics said the Gross domestic product (GDP) of the country fell by 0.3 per cent from September. It was the first time since July that GDP had shrunk on a month-by month basis.
Sterling fell by about a third of a cent against the US dollar and was weaker against the euro too.
Investors added to their bets on the BoE starting to cut interest rates in June 2024, and the yield on 10- year British Government bonds fell to their lowest since May.
Paul Dales, chief UK economist at Capital Economics, said the October data suggested Britain might be in a recession.
