U.K. Bonds Rise as GDP Data Support View for Low Interest Rates
This article is for subscribers only.
U.K. government bonds advanced as a report showing Britain’s economy grew at the slowest pace in a year strengthened the case for the Bank of England to keep interest rates at a record low for longer.
The pound fell for the first time in four days against the euro as the data showed growth slowed more in the fourth quarter than analysts forecast. A measure of U.K. inflation expectations reached the lowest level in 2 1/2 years. A slowdown in consumer-price growth prompted members of the BOE’s Monetary Policy Committee to vote unanimously to keep interest rates on hold this month.