. (AP Photo/Matt Dunham)
The Bank of England may give hints on Thursday about where interest rates are headed.
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If the economy is turning the corner, the idea of an August rate increase could be on the table.
No change in rates is expected at Thursday’s meeting.
The bad news is inflation is drifting down from a five-year high of 3.1 percent hit in November, and growth in the first three months of the year was the slowest since 2012.
Intense winter weather is pointed to for the slowdown.
Also April’s industrial output was weak along with construction and trade numbers.
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The more positive news is that unemployment is at its lowest since 1975, the BoE says the economy is running near full capacity, retail sales have picked up and the longer-term direction for interest rates over the next two to three years is likely to be up, according to Reuters.
Last month the BoE said it wanted to see signs of stronger growth before it prepared to raise rates, in sharp contrast to the United States, where the Federal Reserve has raised rates twice this year and plans to do so twice more.
