DAVY VIEW

The UK economy remained resilient into September. The first estimate of gross domestic product (GDP) growth for Q3 is more than twice the forecast by the Office for Budget Responsibility in last month’s Budget. There is quite a broad-based appearance to the results this year, with business investment remaining solid as the Budget approached. If, as we expect, inflation undershoots hawkish new forecasts by the Bank of England published last week, we see scope for Bank Rate cuts as 2027 progresses.