The UK economy unexpectedly contracted in May.

Jin10 data reported on July 11 that despite analysts expecting a slight rise, the UK economy contracted by 0.1% in May, indicating that Chancellor of the Exchequer Reeves and the Labour government will face challenges. The Labour government's commitment to reviving economic growth is central to supporting Reeves' spending plans. The Bank of England warned that potential growth remains weak and added that first-quarter economic activity was boosted by one-off factors, such as adjustments to stamp duty. Previously, the Bank of England kept the interest rate unchanged at 4.25% last month, but the market expects that at the next meeting in August, the central bank is very likely to cut rates by 25 basis points.