Interest rates expected to be held after small economic growth

The UK economy grew marginally by 0.2% in August following a sharp fall in July. The latest figures have fuelled expectations that interest rates will be left unchanged again next month. 

Analysts described the figures as “lacklustre” and said higher borrowing costs and the higher cost of living was weighing on consumers and businesses.

Rates were held at 5.25% in September, ending a run of 14 consecutive rises after inflation started to slow.

The UK is not currently in recession but there have been concerns over weak growth, with the economy set to be a key area in the next general election which is widely expected next year.