Pound retreats as UK economy extends lacklustre performance

London - The pound reversed an earlier advance against the dollar and gilts rose after data showed the UK economy extended its lackluster performance into the quarter through June.

The Office for National Statistics said the economy experienced a “ notable slowdown” in the first half, reporting a modest 0.3% increase in gross domestic product for the period.

The growth figures follow last week’s data that showed inflation unexpectedly slowed in June, damping expectations for monetary tightening by the Bank of England. The central bank’s next policy decision is on August 3.

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