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Recently released data showed that real GDP in the United Kingdom grew 0.6 percent (not annualized) on a sequential basis in the second quarter. So why did the Monetary Policy Committee (MPC) of the Bank of England this week decide to provide further policy accommodation? Although the economy may have grown at a stronger-than-expected pace in Q2, the outlook has deteriorated notably since voters decided to leave the European Union in the referendum that was held on June 23.

 

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