Bank of England panel meets this month after weak economic figures for November

UK GDP: economy shrank in run-up to election

Figures published on Monday proved the economy was going backwards in November while the legislators were out canvassing for elections. Activity in the last full month before the general election fell by 0.3% and the annual growth rate slipped to a seven-and-a-half-year low-toned of 0.6%. Manufacturing reported a hefty fall in output and the services sector contracted, too.

Those are the facts that will be mulled over by the nine members of the Bank of England’s monetary policy committee when they meet to set interest rates on 30 January. It is perhaps unsurprising, then, that the City envisions their chances of a cut in borrowing expenditure have gone up. A week ago the financial markets set the the possibility of a rate cut at 5 %. Now it is 50%.

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