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FTSE 100 Declines As GDP Flatlines In Q3
(RTTNews) - U.K. stocks fell sharply on Friday after data showed the U.K. economy failed to grow between July to September but avoided the start of a recession.
GDP was flat in the third quarter for the first time this year, avoiding an expected decline.
Sentiment was also dented after Bank of England's Chief Economist Huw Pill said the monetary policy needs to be restrictive in order to bring inflation back to the target.
At the Institute of Chartered Accountants in England and Wales on Thursday, Pill said "Having established monetary policy in restrictive territory it is not the case that we need to raise rates in order to bear down on inflation."
"Sustaining rates at their current level will continue to bear down inflation," said Pill.
The benchmark FTSE 100 was down 69 points, or 0.9 percent, at 7,386 after gaining 0.7 percent on Thursday.
Lower metal prices weighed on metal stocks, with Anglo American and Antofagasta both falling over 2 percent.
Drinks group Diageo plummeted 12 percent after a warning that growth in operating profits will slow in the first half.
Homebuilder Redrow tumbled 6.4 percent after saying it expects annual profit and revenue to be at the lower end of its forecast range.
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