UK GDP grew less than expected but “still an encouraging figure”

Date: April 23, 2010

Data released this morning confirmed that the UK economy grew 0.2% in the first quarter of 2010. The figure was worse than expected, with most economists predicting GDP to come in at 0.4%, matching the quarterly rate for the end of 2009.

Mark Bolsom, Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX Payments specialist, said, “Given the bad weather in the early months of 2010 and the negative impact it had on many businesses, this figure could have been a lot worse. It’s encouraging that the economy sustained growth even when adverse weather conditions prevented many people getting to work.

“Certainly the government will be relieved that the bad weather didn’t derail growth, but I don’t think the figure really lends itself to any particular political party – it’s fairly neutral.”

Bolsom continues, “Many commentators have speculated this week that as economic data becomes consistently stronger, the Bank of England are likely to raise interest rates sooner than expected. I feel it is very unlikely they will do so. Even if GDP had met the forecasted 0.4% growth, it still wouldn’t have been strong enough to support an interest rate hike. I think it’s safe to say rates will stay at 0.5% until 2011 at least.”

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Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
077954 497129
Jessica.buttress@travelex.com

Notes to editors
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About Travelex:
Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments worth £40 billion annually for over 750 large corporate and financial institutions.

Visit www.travelexbusiness.com/uk for more information or email the press office at jessica.buttress@travelex.com