London: The UK economy experienced a contraction of 0.3% in April, leading economists to adjust their expectations regarding potential interest rate cuts. These cuts are now anticipated to occur in August or November, rather than during the upcoming Bank of England (BoE) meeting. According to Anadolu Agency, a significant factor contributing to the contraction was a record decline in exports to the US. The BoE is expected to maintain its current policy rate at next week's meeting, but the likelihood of a rate cut in August has increased. Raj Badiani, economics director for S and P Global Market Intelligence, noted that the BoE predicts a low growth rate for the second quarter of the year. The bank is expected to keep its policy rate steady at 2.45% next week, with plans to lower it gradually to 3.75% in August and November. Paul Dales, chief UK economist at Capital Economics, mentioned that while the recent growth data for the UK is unsustainable, it will not compel the BoE to reduce rates next week. Howev er, it does add to the expectation of a cut in August. Sanjay Raja, chief UK economist at Deutsche Bank, commented that the UK's gross domestic product (GDP) was destined for a shift after a strong start to the year. He explained that the contraction was a result of weak manufacturing and a slowdown in the service sector, with significant impacts from reduced auto production, machinery, and chemicals, as well as declines in car sales, information and communication activities, professional services, and leisure activities. Raja also indicated that while these negative developments in April are expected to ease, they will not fully dissipate. He emphasized that trade uncertainty, particularly with the US, will persist, and the loosening labor market will affect household spending. Restrictive monetary policy will continue to impact output. Despite the resilience of the UK economy this year, Raja forecasted that GDP growth would fall below potential in 2025 before gradually returning to trend in subsequent ye ars. Some improvements are already visible in the latest PMIs and business confidence readings, according to the recent Lloyds Business Barometer.