Weak GDP Slams Brakes on May Rate Rise

The UK economy grew at its slowest pace since 2012 in the first quarter of 2018, with the Beast from the East only partly to blame. It now looks unlikely the Bank of England will raise rates next month

David Brenchley 27 April, 2018 | 11:15AM

Mark Carney, Bank of England, interest rates, GDP, UK economy

A May interest rate rise now looks highly unlikely, after the UK economy saw its worst quarterly GDP figure, of 0.1%, since the fourth-quarter of 2012.

It wasn’t long ago that markets were pricing in a 90% chance of the Bank of England raising rates at its meeting next month. That probability reduced to around 50/50 after governor Mark Carney last week said recent “mixed data” meant he may not pull the trigger in May.

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David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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