UK economy grows by 0.7% in third quarter despite high oil prices

AI desk brief

UK GDP grew 0.7% in the third quarter, matching forecasts, while September growth of 0.2% exceeded expectations for no growth; August was revised down to zero. The ONS said higher fuel and natural gas costs following renewed Middle East conflict constrained activity. The Bank of England raised rates by 25 basis points to 4% last week to cool inflationary pressures. For gold, energy-driven inflation could support hedging demand, but tighter policy could counter that support if it raises expected real yields; the reported nominal rate increase alone does not establish that outcome.