UK GDP grows at weakest pace since 2012

Sterling fell to an eight-week low against the dollar on Friday after Britain’s economy slowed much more sharply than expected in the first three months of 2018.

Sterling slumped 0.8 percent after Britain’s economy grew at its weakest pace since the fourth quarter of 2012, expanding by just 0.1 percent in Q1 2018.

That figure was at the bottom end of economists’ forecasts in a poll and well below the BoE’s prediction of a drop to 0.3 percent.

Market expectations of a BoE rate hike next month fell to 25 percent from 50 percent before the data was released.

Britain’s FTSE 100 jumped sharply, up 0.4 percent, after the slide in sterling on weaker than expected data.

Multinational exporting companies on the index tend to make gains when the pound falls.

Mark Carney speaks today at 2 pm, he could speak about the future rate hike and this could again weaken Sterling further.

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