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

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam