Quotes from Bank of Cyprus:
-It is worth noting that manufacturing and services PMI of the UK were above the 50 mark throughout the year and manufacturing and industrial production are looking strong too. However, the positive contribution of domestic demand to the GDP that adds sustainability to growth is not accommodated with external factors, such as the Euro Area.
-The economic stagnation in the Euro Area is actually hurting UK's trade balance as imports outpace exports. The weak growth in the Euro Area we believe will restrain growth in the UK. Moreover, actual economic activity from abroad is shrinking and that has to do with poor investment returns from the Euro Area. -We do not expect any interest rate surprises from the BOE, taking into consideration the importance of UK job dynamics(labour participation, unemployment, average employed hours).
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