Economic news

Pound rises on revised UK GDP figures

Sterling jumped unexpectedly on Friday following an impressive revision to UK’s first quarter economic growth raised anticipations of the BoE's interest rate hike later in the year.

Photo: Reuters

The British currency soared 0.61 percent to $1.3153 after the Office for National Statistics reported the growth in the first three months of the year was 0.2 percent. Versus a euro underpinned by European Union leaders agreeing an immigration deal, it was virtually unchanged at 88.425 pence.

The fresh economic numbers also showed Britain’s services sector grew in April, raising expectations of a second-quarter surge after a weak start to 2018 that has held back the Bank of England increasing interest rates so far this year.

Market forecasts for an August rate hike rose to 60 percent from an earlier 50 percent following fresh figures.


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