The United Kingdom’s preliminary reading of fourth quarter gross domestic product showed expansion of 0.50%, meeting consensus estimates and rising slightly above the final 0.40% expansion reported in the third quarter. The figure from the Office of National Statistics recorded growth in services and agriculture, climbing to 0.70% and 0.60% respectively while construction and industrial production fell by -0.10% and -0.20% during the same period. On an annualized basis, growth moderated to 1.90% from 2.10% while total GDP for 2015 printed at 2.20%, lower than last year’s more moderate growth of 2.90%. The Bank of England is preparing to its own meeting of the Monetary Policy Committee on February 4th, with renewed expectations that policymakers will opt to adjust forecasts on growth and inflation for the coming years. Upon the release of the GDP figure, the Pound Sterling gained ground over the US dollar, reaching 1.4324.
BoJ Slashes Rates
Daily Analysis - 29/01/2016