Phoebus comment on GDP

11 July 2025

Richard Pike, chief sales and marketing officer at Phoebus says:

“Another monthly contraction in GDP highlights just how fragile the UK’s economic recovery remains. While not unexpected given the broader slowdown in activity, it reinforces the view that momentum is stalling across the board.

“For the Bank of England, this adds further weight to the case for a rate cut, potentially as soon as August. Inflation is gradually easing, giving policymakers more room to act. However, any move is likely to be carefully measured. The Bank’s Financial Policy Committee (FPC) said on Wednesday that geopolitical tensions and trade disputes continue to pose risks to UK financial stability. With that in mind, the Bank will remain mindful of inflation risks and the potential impact of quantitative tightening, particularly in such a fragile growth environment.

“In this climate, firms across the financial services sector will need to remain agile, with technology playing a vital role in managing operational risk and ensuring continued service delivery.”