UK Q1 GDP figures fall short of expectations

Results for UK GDP growth in the first quarter show the economy grew only 0.3% to 2.3%, less than half the rate of growth from the same period in 2016. The weaker rate of expansion may point to the effects weaker Sterling has had on UK price inflation and spending power. Despite the disappointing figures, the economy remains resilient in the face of Brexit and it is likely the Bank of England will continue to keep monetary policy highly accommodative throughout 2017 in order to steady the economy. UK government bonds are seeing moderate selling and the FTSE All Share is down 0.2%.