Whatevercomesin: The British economy remains weak despite 0.7% growth in first quarter (Guardian)

Miyerkules, Abril 6, 2011

The British economy remains weak despite 0.7% growth in first quarter (Guardian)

Thinktank says Bank unlikely to raise interest rates

The British economy remains weak despite growing by an estimated 0.7% in the
first quarter of this year, the National Institute of Economic and Social
Research has warned.

In the latest prediction that Britain's recovery from recession is faltering,
NIESR said the UK had probably only achieved "weak" average quarterly growth
of 0.1% over the last six months. Robust growth since January had done little
more than recover output that was lost in the final weoeks of 2010 when heavy
snow disrupted the economy, it said.

The thinktank said the fragile situation made it almost certain that the Bank
of England's monetary policy committee will leave interest rates unchanged at
noon on Thursday.

"This strong figure for the first quarter of this year is flattered by the
economic impact of the adverse weather in the final quarter of last year,"
said NIESR. "With the state of the recovery uncertain we expect the MPC to
maintain the current monetary policy stance at this week's meeting."

The latest industrial output figures also suggested that the economy is
running out of steam, having initially rebounded strongly from last December's
wintery weather. Figures from ...

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