Sterling Retreats as U.K. Economy Extends Lackluster Performance
- Pound may be driven by dollar moves after Fed rate decision
- Economy experienced ‘notable slowdown’ in first half: ONS
U.K. Economy Grew 0.3% in Second Quarter
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The pound reversed an earlier advance against the dollar and gilts rose after data showed the U.K. economy extended its lackluster performance into the quarter through June.
The Office for National Statistics said the economy experienced a “notable slowdown” in the first half, reporting a modest 0.3 percent increase in gross domestic product for the period. The growth figures follow last week’s data that showed inflation unexpectedly slowed in June, damping expectations for monetary tightening by the Bank of England. The central bank’s next policy decision is on Aug. 3.