Bank of England primed for rate rise

The economy accelerated in May, official figures are set to show this week, giving the Bank of England further ammunition for raising interest rates next month. Signs of a recent pick-up in activity are likely to bolster the belief at the Bank that the dismal 0.2% growth in the first quarter was largely a result of the cold snap dubbed the “Beast from the East”. When the Office for National Statistics publishes its inaugural monthly estimate of GDP, on Tuesday, City forecasters expect growth of 0.3% on the previous month. While the forecast figure is far from inspiring — indicating growth was still stuck at 0.2% in the three months to May — it indicates a slight lifting of the pace, in line with business surveys suggesting a further improvement in June. Click here for the full Sunday Times article (£)