UK economy grew 0.5 percent in three months to November: NIESR estimate

LONDON (Reuters) – Britain’s economy grew at a solid rate of 0.5 percent in the three months to November, the country’s National Institute of Economic and Social Research estimated on Friday following strong industrial output data.

NIESR said this growth supported the Bank of England’s decision to raise interest rates for the first time in a decade last month and represented a pick-up from a weak first half of the year, as well as the 0.4 percent recorded in the last quarter.

“GDP growth at 0.5 per cent is somewhat higher than the economy’s speed limit,” NIESR economist Amit Kara said.

“If, as we expect, the economy continues to expand around this pace and inflation remains elevated, there is a case for the Bank of England to gradually raise the policy rate to stop the economy from overheating,” he added.

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