UK GDP below MPC expectations – RBS

FXStreet (Delhi) – Research Team at RBS, note that the UK GDP growth slowed to 0.5% q/q in Q3 from 0.7% in Q2 but this is hardly an ‘alarm bells’ outturn, but it does represent the third successive sub trend outturn on an underlying (exoil & gas) basis and is below BoE expectations (0.6%).

Key Quotes

“This matters for rates markets because the BoE’s monetary policy guidance centres on above trend growth eliminating lingering spare capacity. Q3’s outturn leaves the UK economy on course for full year 2015 expansion of 2.3%, vs consensus forecasts at 2.5%. On an exoil & gas basis, full year growth is on course for just 2.1%.”

Research Team at RBS, note that the UK GDP growth slowed to 0.5% q/q in Q3 from 0.7% in Q2 but this is hardly an ‘alarm bells’ outturn, but it does represent the third successive sub trend outturn on an underlying (exoil & gas) basis and is below BoE expectations (0.6%).

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