UK growth slowdown intensifies interest rate 'dilemma'

Economy still ‘vulnerable’ to Covid shocks

clock • 4 min read

A sharper than expected slowdown to UK growth in October has shown how the economy is “vulnerable” to Covid shocks, while intensifying the Bank of England’s interest rate “dilemma”, it has been warned.

The economy grew by just 0.1% in October, according to figures published on Friday (10 December) by the Office for National Statistics, which highlighted a fall in construction and supply chain issues. Maike Currie, investment director at Fidelity International, said: "The steam has well and truly been taken out of the UK economic recovery." "With the government moving to implement its ‘Plan B' over concerns on the Omicron variant, there is a creeping sense of déjà vu. "Workers are heading back to their kitchen tables and the big festive season that retailers and the hospitality se...

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