UK Seen Avoiding Contraction Despite Brexit Setback

Britain escaped a severe economic slowdown in the three months after the Brexit referendum shock, official figures are expected to show on Thursday, further diminishing the chance of a fresh interest rate cut by the Bank of England next week.

With consumers so far shrugging off worries about voters’ decision to quit the European Union, economists polled by Reuters have, on average, estimated that the economy grew by 0.3 percent in the July-September period from the previous quarter.

Many of those analysts are forecasting growth as high as 0.4 percent, slower than the 0.7 percent expansion in April-June but better than the most recent forecast by the BoE.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.