“The new figures, which confirm that GDP increased by 0.3% in the first quarter, are not surprising. While the data means GDP was not upgraded, the positive message is that the recovery remains on course, and we expect growth to improve in the second quarter. Nonetheless, the upturn in the economy is still fragile, and risks of a setback remain serious.
Also commenting on the UK current account deficit, Mr Kern said: “The large current account deficit in the first quarter highlights the urgent need to accelerate the pace at which our economy is rebalanced. With a tough deficit cutting programme now in place, it is important for the MPC to persevere with low interest rates – which would make it easier for businesses to invest and export.