UK economy grows in line with expectations in second quarter


LONDON, August 12 - 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 in the second quarter by 4.8%, 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 bigger trade deficit also prevents GBP from rising too much, told ING in a note to clients.

Stuart Cole, head macro economist of Equiti Capital in London, said it is quite likely that the pace of growth is now at its peak.

So for sterling, while the economic landscape continues to provide solid support, it does suggest the economic bottomside progress will be slow, he added.

Sterling was flat versus the dollar at $1.3869, after booming in the previous session - interrupting a 3 days losing streak against the greenback.

The pound touched broad in 18 month Highs on Tuesday and traded hands to 84.62 pence.