U.K. economic growth likely accelerated in October, BoE likely to keep monetary policy on hold in near future

The U.K. economy is likely to have grown in October. The economic growth has seen a downshift as Brexit uncertainties seem to have finally caught up with the economy. For October the consensus forecast is for GDP to rise moderately by 0.1 percent sequentially, although that comes after consecutive declines in August and September, noted Wells Fargo in a research report.

Sector wise, services output is likely to have grown 0.1 percent in the month, after being unchanged in September, while industrial output is likely to have grown 0.2 percent, which would be the first rise since July.

Given the sub-par growth performance of the U.K. economy, the Bank of England is likely to keep monetary policy on hold for the foreseeable future, said Wells Fargo.

“Next week also sees the U.K. general election, with some opinion polls suggesting the Conservative party might secure an outright parliamentary majority. Should that occur the chances of an initial Brexit deal should jump higher, though we do not view that as a panacea that would fully resolve all economic uncertainties”, added Wells Fargo.