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U.K.'s Worst Growth Since 2012 Sinks Pound on Rate Hike Doubts

  • Mark Carney last week hinted a May hike wasn’t locked in
  • GDP grows just 0.1% with construction hit hardest by weather
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The BOE needs to consider whether this soft patch is "meaningful," says JPMorgan’s Diana Amoa.Source: Bloomberg
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The U.K. economy registered its worst performance since the end of 2012 in the first quarter, fueling speculation that the Bank of England will refrain from increasing interest rates next month.

The pound fell as investors further pared back bets on a hike in borrowing costs that had been seen as a near-certainty until last week, when Governor Mark Carney first sowed the seeds of doubt on whether his institution would deliver it. The Office for National Statistics said gross domestic product barely rose in the initial three months of 2018, with growth of only 0.1 percent.