© Reuters. A bank employee counts pound notes at Kasikornbank in Bangkok, Thailand, October 12, 2010. REUTERS/Sukree Sukplang/File Photo
By Joice Alves
LONDON (Reuters) – Sterling was little changed on Thursday as analysts expected the Bank of England to make no moves in its monetary policy after official data showed Britain’s economy grew in line with expectations in the second quarter.
The Office for National Statistics said the economy grew by 4.8% in the second quarter, in line with a Reuters poll of economists’ quarter-on-quarter expectations.
Analysts said the BoE was unlikely to make a move on the data, with expectations for economic growth in Britain to slow down in the third quarter.
“The data is unlikely to move the needle on the BoE story and perhaps a widening trade deficit also prevents GBP from moving too much higher,” ING told their clients in a note
Stuart Cole, head macro economist at Equiti Capital in London said “it is quite likely that the pace of growth has already peaked”.
“For sterling, while the economic landscape continues to provide solid support, it does suggest further topside progress will be slow,” he added.
Sterling was flat versus the dollar at $1.3869, after rising in the previous session interrupting a 3-day losing streak versus the greenback.
Versus the euro, the pound traded just off 18-month highs touched on Tuesday and was flat on the day, exchanging hands at 84.62 pence.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.