Downbeat BCC report pressures Bank ahead of rate call

The first quarter rebound in the UK economy was weaker than expected, a survey suggests, adding to a growing consensus the Bank of England should again delay raising interest rates this week.

The British Chamber of Commerce (BCC) says the upturn in the first three months of the year was likely to have only been slightly larger than the decline of 0.5% seen in Q4 2010. Based on a survey of 6,000 UK businesses, the BCC report says firms continue to be constrained by cashflow and price pressures as well as low consumer confidence. The Office for National Statistics (ONS) is set to release its first estimate of GDP for the first quarter on 27 April. On Thursday, the Bank of England's Monetary Policy Committee will again vote on whether to raise interest rates or keep them a...