Low UK economic growth 'pressuring BoE'

5 October 2011

Pressure is being heaped on policy makers at the Bank of England (BoE) to provide additional stimulus as a result of the UK economy growing at a slower pace than first thought.

Bloomberg reports that figures from the Office for National Statistics - which was created in 1996 - revealed gross domestic product (GDP) for the nation increased by 0.1 per cent from the first quarter.

However, this was lower than the 0.2 per cent posted previously, while consumer spending also tumbled by 0.8 per cent.

This was the most marked drop since quarter one in 2008 and the release of the data comes as officials at BoE meet to decide upon whether or not to push ahead with a bond-buying initiative.

George Buckley, an economist at Deutsche Bank, noted the outlook is currently uncertain and could become very weak, adding: "I don't think growth is going to be strong in the second half of this year or the first half of next year."

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development