UK GDP: mortgage payers’ worst fears are likely to come true

Cycle of interest rate rises are expected to continue after better than forecast economic data

• UK economy shrinks by 0.1% in May after coronation festivities
• Business live: economy shrank after bank holidays hit activity

For mortgage payers, the latest economic growth figures are a disappointment.

The 0.1% contraction in gross domestic product between April and May tells the Bank of England that the jump in interest rates over the previous 18 months has only had a mild dampening effect on the economy.