Kevin Brown, savings specialist comments on UK GDP

"While GDP fell on a monthly basis in April for the first time since the end of last summer, the quarterly picture tells a more encouraging story.

"The economy actually grew 0.7% in the three months to April, driven by a resilient services sector and a construction industry that has now strung together consecutive months of growth following a period of contraction.

"Despite this, the economy is facing considerable headwinds, the most serious of which is the conflict in the Middle East, which is acting as a chokepoint in the global economy that is pushing up energy prices, disrupting supply chains and spooking policymakers.

"Yesterday, the European Central Bank became the first G7 central bank to raise rates in response, citing inflationary pressures stemming from the Middle East conflict. That decision will not have gone unnoticed on Threadneedle Street.

"Even so, we expect the Bank of England's Monetary Policy Committee to hold rates when it meets next week. UK inflation remains above the 2% target but has not spiralled because of the conflict, while the economy is holding up relatively well, all things considered. Increasing rates would act as an anchor on the economy and a fragile labour market.

"For UK households, the message is the same regardless of what the MPC decides: build a financial buffer if you can and make sure your money is working as hard as possible, whether that means shopping around for a better savings rate or putting spare cash to work in the stock market for the long term."