LONDON (Thomson Financial) - The UK's economic growth accelerated during the three months to May compared with the previous three months, a leading economic think-tank said.
The National Institute of Economic and Social Research (NIESR) estimates GDP growth over the period at 0.8 pct from the previous three months. In the three months to April, the growth rate was estimated at 0.7 pct.
"The underlying message is that the economy continues to grow at faster than its trend rate," the NIESR said in its monthly report for GDP estimates.
It noted these figures are not greatly affected by the most recent increases in borrowing costs, and that interest rates have only recently moved into a neutral range.
"Nevertheless it is likely that the Monetary Policy Committee will be looking for evidence of easing in the pace of economic growth and in its absence will face pressure for further interest rate increases," it said.
carlo.piovano@thomson.com
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