Bank of England deputy notes UK economic resilience to energy shocks

Bank of England Deputy Governor Sarah Breeden expressed surprise at the resilience of the UK economy regarding recent energy price shocks stemming from Middle East conflicts. Speaking in Bangkok, Breeden noted that many firms have mitigated the impact by learning from the 2022 energy crisis and utilizing hedging strategies.

This resilience follows data from the Office for National Statistics showing the UK economy grew by 0.1% in August, exceeding economist expectations of a 0.1% decline. The growth was supported by strong factory production and interest in artificial intelligence adoption and data center development. The Bank of England continues to monitor whether the private sector's ability to absorb these shocks might result in delayed economic effects.