British Economy Comes Out of “Technical Recession” but Remains Stagnant Due to High Interest Rates”.

On Friday, official figures were released showing that the British economy grew at a strong 0.6% in the first quarter of the year, signaling the end of what economists had called a “technical recession.” This positive growth was seen across various sectors of the economy and indicates broad-based strength. Despite this, the British economy has experienced minimal growth over the past year due to high interest rates. These rates have been at their highest in 16 years and stand at 5.25%.

The high interest rates have helped control inflation but have put a strain on the overall British economy. There is optimism that interest rates may be decreasing soon, as suggested by Bank of England Governor Andrew Bailey. He hinted at a possible rate cut in June if inflation continues to decrease. While high interest rates help control inflation by making borrowing expensive, they have had a negative impact on economic activity in the UK. A potential rate cut could provide some relief and boost economic activity in the coming months.