U.K. Growth Surprise Clears Path for Bank of England Rate Rise
The U.K. economy’s surprise acceleration has paved the way for the Bank of England to raise interest rates for the first time in a decade next week.
The pound rose and investors increased bets on a tightening of monetary policy on Nov. 2 after initial data showed 0.4 percent growth last quarter, more than economists forecast and the fastest pace of the year so far. This is the last major economic report BOE officials will get on the health of the economy before their crucial meeting.
“Today’s growth figures show that, despite the Brexit headwinds, U.K. growth is good enough to give the bank the green light for a rate rise next Thursday,” said Ian Stewart, chief economist at Deloitte. Full Story