UK GDP Fell 0.3% in November Last Year... Interest Rate Cut Likely Upward Pressure

[Asia Economy Reporter Moon Jiwon] As the UK economy showed negative growth in November last year, there is increasing analysis that the base interest rate is likely to be cut.

According to the UK Office for National Statistics (ONS) on the 13th (local time), the UK's gross domestic product (GDP) in November last year decreased by 0.3% compared to the previous month.

The UK economic growth rate recorded 0.1% in both September and October before turning negative in November. The production index and service index fell by 1.2% and 0.3%, respectively, while manufacturing decreased by 1.7%.

Foreign media interpreted that Brexit (the United Kingdom's withdrawal from the European Union) and the uncertainty ahead of the general election in December last year hampered the UK economy.

Accordingly, some analysts believe that the Bank of England (BOE), the central bank, is highly likely to lower the base interest rate at the Monetary Policy Committee (MPC) meeting on the 30th.

Mark Carney, Governor of the Bank of England, recently stated that despite the reduction in Brexit uncertainty, the possibility of the UK economy's recovery is not certain.

The current base interest rate of the Bank of England is 0.75%.