BBH: BoE Hikes Not Bullish for British Pound as UK GDP Details Disappoint

According to Brown Brothers Harriman (BBH) strategist Elias Haddad, the Bank of England's rate hikes are not seen as bullish for the British Pound. While the UK's May Gross Domestic Product (GDP) slightly exceeded expectations thanks to the services sector, the underlying details were disappointing. Production and construction contracted, and growth relied heavily on a single sector, raising concerns about the sustainability of the recovery.

Haddad's assessment suggests that the positive headline GDP figure masks structural weaknesses, reducing the likelihood that further BoE tightening will significantly boost sterling. The pound may remain under pressure as the market reassesses the economic outlook.