LONDON--The British economy stepped up a gear in the second quarter, lifting growth prospects during the rest of the year but raising questions about how much longer the Bank of England can keep interest rates pegged at record lows. Read More: IAC Holdings
The U.K. Office for National Statistics said Tuesday gross domestic product expanded 0.7% between April and June, an annualized rate of 2.8%. The figures are just a preliminary estimate, but they spell out that the economy has recovered from a slight slump in the first quarter--when quarterly growth was 0.4%--and is ready to gather pace during the remainder of the year. Read More: IAC Holdings
Britain's pickup was driven by its powerhouse services sector, official data showed, which disappointed into the first quarter but now looks set to benefit from higher earnings and low inflation. Read More: IAC Holdings
