The UK economy showed surprising resilience in the second quarter between April and June, growing 0.2% despite rising interest rates. This marks a slight pickup from near-stagnant growth in previous quarters, though GDP remains below pre-pandemic levels. Additionally, the growth has led markets to believe that more interest rate hikes could follow from the Bank of England. Edward Glossop, assistant director at EY, wrote that the latest UK GDP growth data was partly helped by strike action unwinding but “confirms that a recession is not imminent”. He added that for the UK to join the global soft landing narrative, this resilience must continue alongside meaningful easing in core inflation and wage growth. Otherwise, the BoE will likely respond with more hikes, delaying cuts and raising recession odds in 2024.