August 6, 2007 / 11:09 PM / 12 years ago

Economy grows by 0.8 percent

LONDON (Reuters) - The economy grew by 0.8 percent in the three months ending July, the same as in the three months to June, the National Institute of Economic and Social Research said on Tuesday.

The think-tank said although that suggested the economy continued to expand at an above-trend rate, it expected to see a slowdown later this year and therefore further monetary tightening by the Bank of England was not warranted.

“In view of the lags with which the economy responds to interest rate changes we take the view that these figures do not in themselves imply that further interest rate increases are desirable,” NIESR said.

The BoE has lifted borrowing costs five times since last August to 5.75 percent and many economists expect another rise to 6 percent before the end of this year.

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