Wednesday 21 March 2018

UK economy setting pace among G7 nations

Governor of the Bank of England, Mark Carney
Governor of the Bank of England, Mark Carney

Jennifer Ryan

The British economy expanded at its fastest pace in four years in the first quarter of 2014, as the Bank of England maintained record-low interest rates to cement the recovery.

GDP rose 0.9pc, up from 0.7pc in the final three months of 2013, according to a Bloomberg News survey. It would be the strongest performance since the second quarter of 2010.

Britain is on course to be the fastest-growing G7 nation this year, fuelling speculation that BOE policy makers led by Governor Mark Carney might raise borrowing costs as early as Q4. Officials have pledged to keep the key rate at 0.5pc until the economy has used up more of its slack.

"This year should see a continued recovery at a reasonably brisk pace," said Philip Rush, an economist at Nomura International Plc.

"The positive news on the economy should be bringing forward that time when rate hikes are appropriate."

Irish Independent

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