LONDON (Reuters) - Britain’s economic growth slowed to 0.5 percent in the three months to March from 0.6 percent in the three months to February, the National Institute of Economic and Social Research said in estimates on Thursday.
“This period of below average growth is to be welcomed,” NIESR said in a statement.
“While the problems of the financial sector may affect the economy in the near future they have not had a large impact in the seven months since the crisis began.”
The Bank of England is expected to trim interest rates by 25 basis points to 5 percent to lower the risk of a sharp economic slowdown, but policymakers have said they would welcome a cooling in growth to help contain inflationary pressure.
The International Monetary Fund cut its UK growth forecast for this year to 1.6 percent this week, well below the government’s prediction of 1.75-2.25 percent growth.
Reporting by Matt Falloon; editing by Stephen Nisbet