Below-trend growth makes case for rate cut

LONDON (Reuters) - The economy continues to grow below its trend rate, bolstering the case for an imminent interest rate cut from the Bank of England, the National Institute of Economic and Social Research said on Thursday.

The thinktank estimates the economy grew by 0.4 percent in the three months to April after a downwardly revised 0.4 percent in the three months to March.

"There is a case for a quarter-point reduction in the interest rate this month based on the prospect of slower economic growth," it said.

"The results for both three-month periods are boosted by buoyant figures for February making it possible that slower growth could emerge in the three months ending in May."

The Bank of England concludes its two-day monetary policy committee meeting at 12:00 p.m.

Most analysts expect it will leave rates steady at 5 percent, having already cut them three times since December, but a run of dismal economic data has made the decision a close call.

(Reporting by Christina Fincher, editing by David Christian-Edwards)