Pressure on the Bank of England to raise interest rates is cooling off as the economy slows down.
In the first quarter, growth in the manufacturing and industrial sectors came to a halt, which in turn slowed down the macro economy.
The economy grew by 0.4 per cent in the first three months of the year, which is half the growth of 0.8 per cent it enjoyed in the last three months of 1999.
The Monetary Policy Committee is scheduled to meet this Thursday to discuss the issue of interest rates. The rate has remained unchanged at six per cent since January this year.
There had been speculation that the MPC would boost the rates in a further attempt to deflate the pound. With these new figures,however, industry sources now say it is doubtful the Bank will act.