Growth surprise boosts Brown and raises interest rate fears


The UK economy grew twice as fast as previously thought in the second quarter of 2003, official figures have shown.

The Office for National Statistics said its revised estimate showed that gross domestic product (GDP) rose by 0.6% between April and June, and was up 2.0% on the year.

The figure will come as a boost to Chancellor Gordon Brown, whose recent predictions of growth of between 2.0% and 2.5% for the full year have been widely criticised as being too optimistic.

But it will raise fears that the Bank of England may soon raise interest rates from their 48-year low of 3.5%.

The minutes of the Bank's Monetary Policy Committee revealed that at its September meeting some members were contemplating an interest rate rise to curb soaring consumer demand and rising debt levels.



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