UK: We expect BoE moetray policy to remain accomodative - NIESR

Our monthly estimates of GDP suggest that output grew by 0.5 per cent in the three months ending in March 2017 after growth of 0.5 per cent in the three months ending in February 2017, said the National Institue of Economic and Reseach on Friday.

James Warren, Research Fellow at NIESR, said “We estimate growth slowed slightly in the first quarter of 2017 to 0.5 per cent. A key component of this moderation has been relatively weak retail sales in the first two months of this year. Consumption is expected to moderate further this year as increasing inflation erodes households’ purchasing power. We expect the Bank of England to look through this temporary shock to inflation and for monetary policy to remain accommodative.”