The pound rose today after data showed the British economy beat expectations in the first quarter of the year, growing 0.6 percent and leaving behind 2023’s mild recession.

Sterling was last up 0.1 percent at 1.2537 dollar, having traded at 1.2516 dollar before the figures were released. The pound is slightly higher so far in May but has fallen 1.5 percent this year as the dollar has risen on the back of a strong U.S. economy.

The Office for National Statistics data showed that Britain’s economic output grew by a stronger-than-expected 0.6% in the January-to-March period, compared with the previous quarter.

The Bank of England has yesterday left the key rate unchanged at 5.25 per cent. The Bank said that its Monetary Policy Committee (MPC) voted 7-2 to keep rates at a 16-year high of 5.25 per cent.

The MPC has kept rates on hold at six meetings in a row, but it hinted that a first cut since March 2020, at the onset of the COVID-19 pandemic, could come as soon as its next meeting in June.