Sluggish UK economy inches forward but Bank of England unlikely to lift rates
The IMF has downgraded its 2017 economic outlook for Britain by more than any other rich nation, predicting growth of 1.7%
London — Britain’s economy failed to build much momentum over the past three months after almost stalling at the start of 2017, reducing an already slim chance that the Bank of England would soon reverse 2016’s emergency interest-rate cut. Economic output grew 0.3% on the quarter, edging up from a sluggish rate of 0.2% in the first quarter, as a booming film industry and bright spots elsewhere in the services sector were largely offset by contractions in manufacturing and construction. The figure capped the weakest first half of any year since 2012. Finance minister Philip Hammond said the economy was "steady" and that more certainty about how Britain would leave the EU in less than two years’ time would help spur economic growth. Sterling edged down against the dollar after the data was released and British share prices rose. "To me, this is the final nail in the coffin for an August rate hike," said Alan Clarke, head of European fixed-income strategy at Scotiabank. Underlining the...
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