|
UK economy 'still growing strongly' |
|
|
|
|
Written by Staff Writer
|
|
Feb 23, 2007 at 02:56 PM |
The British economy is still expanding at a strong rate and in-line with market expectations, according to new statistics released today. The centre for economics and business research (cebr) states that the UK economy grew by 0.8 per cent during the fourth quarter of 2006, bringing year-on-year growth to its highest level since the fourth quarter of 2004.
The London Stock Exchange
Service industries provided the main drive behind the strong growth, with hotels, restaurants and distribution businesses featuring prominently – although the production sector saw its output fall over the quarter.
The centre claims that the latest figures are likely to provide fresh ammunition for the more hawkish members of the monetary policy committee to increase rates again in the near future.
"With remaining uncertainty on the outcome of the January pay settlement round and economic growth continuing to grow faster than its trend rate, interest rates are likely to rise again next month," the cebr report states.
Currently, interest rates stand at 5.25 per cent, following what many perceived to be a shock rise in January 2007. The rise follows two previous rises in the latter half of 2006.
|
|
Last Updated ( Mar 26, 2007 at 01:33 PM )
|
Blog