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Bank of England deputy Sarah Breeden says she is 'surprised how well' the UK economy has absorbed the energy price shock

UK GDP grew 0.1% in August, beating forecasts of a 0.1% decline, handing the Chancellor a boost ahead of the autumn Budget.
UK GDP grew 0.1% in August, beating forecasts of a 0.1% decline, handing the Chancellor a boost ahead of the autumn Budget.

Bank of England deputy governor Sarah Breeden told CNBC on Thursday that the UK economy has proved more resilient than expected in the face of a major energy price shock driven by the war in Iran. GDP grew 0.1% in August, beating forecasts of a 0.1% decline, following 0.4% growth in July. Breeden said businesses had learned lessons from 2026's energy crisis and many had hedged against price rises, cushioning the blow.

Breeden said the AI boom is also supporting UK economic activity, with firms building data centres and adopting new technology.

She was speaking at IMF meetings in Bangkok, where she said central banks and finance ministers had broadly been 'surprised' by economic resilience through the shock.

The August GDP figures hand the Chancellor a boost ahead of the autumn Budget, with the economy outperforming economist expectations.

MoreLBCBank of England deputy ‘surprised how well’ economy absorbed energy price shockArise NewsBank Of England Says Businesses Absorbing Energy Costs Could Ease Inflation PressuresBreakingthenews.netBreeden sees UK resilience amid energy shock - Breakingthenews.netTraders UnionBank of England says UK economy weathers energy price shock better than expected - Traders UnionCNBCBoE's Sarah Breeden: Surprised how well the UK economy has absorbed the energy price shockForex FactoryBOE's Breeden: We have been surprised at how well the UK economy has absorbed the energy price shock
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