LONDON — Britain’s economy shrank more than expected at the end of 2012 with a North Sea oil production slump, lower factory output and a hangover from London’s Olympics pushing it perilously close to a “triple-dip” recession.
The country’s gross domestic product fell 0.3% in the fourth quarter, the Office for National Statistics said on Friday, sharper than a 0.1% decline forecast by analysts.
The Bank of England could cut interest rates and inject billions of pounds into the financial system as early as Thursday as policymakers seek to prevent Britain sliding into recession after the EU referendum, reports The Guardian.
Valletta (AFP) - The European Central Bank looks set to keep its key rates steady and refrain from any additional stimulus measures at a meeting in Malta on Thursday, despite concern about chronically weak inflation, analysts said.
The Bank of England will keep interest rates at a record low 0.50 percent and opt against expanding its stimulus plans until the new year despite ongoing eurozone turmoil, analysts said.The BoE's Monetary Policy Committee (MPC) begins a two-day meet on Wednesday amid fears over the impact of the eurozone debt crisis on the flagging British economy, which is also buckling under state austerity and high inflation.