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English economy hits speed bump

The British economy is currently hitting a speed bump, as growth has slowed recently by 0.4% during the third quarter of 2005. This compares to the 0.5% growth from the second quarter of the year. The total gross domestic product growth on a 12-month comparison stood at 1.6% during the third quarter.

The central bank`s nine-strong Monetary Policy Committee voted earlier this month to freeze the rate of interest at which the Bank of England lends to commercial banks after a cut from 4.75% in August, amid subdued economic growth.

British Finance Minister Gordon Brown admits that the rate of growth would not be as strong as forecast due to high oil prices and a sluggish global economy. The revealing data reduces prospects of an interest cut from the Bank of England`s rate-setting Monetary Policy Committee before the end of 2005, according to analysts.