The U.K economy grew by 0.6 percent on the quarter unchanged from the previous estimate, while growing an annualized 2.8 percent slightly below the 2.9% reported in the previous estimate and economists expectations.
Over all of 2007 the U.K economy grew by 3.0 percent slightly below median estimates of 3.1%, though the GDP came slightly below median estimates in the U.K, but it remains upbeat as investors were waiting for more slowing to unveil, as the U.K seems to have been affected heavily by a U.S credit meltdown, which forced the BOE to cut their interest rates by half a total of half percentage point so far!
The BOE stressed that risks are balanced among growth and inflation, the situation in the U.K doesn't look as ugly as it is in the U.S, especially as the BOE started dealing with their falling housing sector earlier than the Feds; it took the Feds nearly a year before they started to admit the housing market was deteriorating rather than just correcting!
Yet the BOE can't just stop now, since Nationwide reported that house prices fell 0.6% in March, while compared with a year earlier prices rose only 1.1% below median estimates of 2.0 percent.
The housing market continues to show continues easing in the U.K, yet the BOE remain upbeat that they won't face the same destiny that their U.S counterparts are currently in Right now. Meanwhile another report showed that the current account deficit narrowed to 8.5 billion Sterling in the fourth quarter beating median forecasts of a 18.3 billion deficit.
The 15-nation's Germany released their import price index for February, rising 1.1% on the month and above median estimates of 0.6% rise, while compared with a year earlier prices rose 5.9%, it seems that the rising Euro couldn't eliminate the downside effects of the rising food, energy and raw material prices, and this sure is to continue pushing inflation rates up to the sky in the Euro Zone.
Markets now await the income report from the United States, should the ongoing deterioration in the U.S economic activity have affected the Americans, markets will punish the Feds and will sink greenback into new lows against major currencies.
So far the U.K and seemingly the Euro Zone are just in safe hands, it seems both central banks are on top of things, while the Feds are just desperate and are trying the best they could to help the economy's revival, and prevent it from going into recession!