The growth in the UK stagnated in the second quarter
Sun, Aug 24, 2008
Britain’s economy went unexpectedly stagnated in the second quarter, thus end the most extended period of economic growth for more than a century, reported Bloomberg.
The gross domestic product has remained unchanged over the past quarter as reported by the National Statistical Institute of Great Britain, where forecast for growth of 0.2 percent. Economists expected growth of 0.1 percent based on the median forecast of 34 - there are specialists.
The growth on an annual basis was 1.4 percent and is the weaker since 1992.
The report reinforces the pressure on the Bank of England to leave aside concerns about inflation and reduce interest rates. Its leaders, led by manager Mervin King, left unchanged the basic interest rate over the past four months, after the consumer price index rose to 4.4 percent, more than two times the target level of government.
“It will become worse” said Ross Walker of Royal Bank of Scotland, cited by Bloomberg. “You may have to wait at the beginning of 2009 before they become witnesses of the first reduction of interest because the situation rise prices still seem warning.”
After the announcement of the data in earlier today UK against the dollar at 1.8573, and at the moment is traded at a level of 1.86. Pika its cable reached in November, when levels were reached by 2.11.
The second largest economy in Europe out of its last recession in 1991, then slowed in the second quarter of 1992 Tempoto growth in the UK on an annual basis can be compared with levels of 1 percent in Japan, of 1.8 percentage points the United States and 1.5 percent in the euro.
By early this week delivered the report at a meeting of governors of the ECB on 7 August, which was decided on the basic interest rate to remain unchanged at 5 percent. Since the report shows that among the managers had a three opposite directions for the amendment of interest that happens only for the second time in months here. Ultimately manager Marvin King and the other six members of the Committee on monetary policy have taken the discussion supremacy in the interest rate to remain unchanged.
Leave a Reply