UK economy shrank .2 percent in the first quarter as per the number released by the Office of National Statistics (ONS). It is against consensus estimate of 0.1% growth and follows a negative growth of .3% in the final quarter of 2011. Latest figure is based on about 40% of the information it will be used to calculate the final number. Current number constitutes only the first estimate by the ONS.

David Miles from the Bank of England’s interest rate-setting Monetary Policy Committee said in an interview with Bloomberg on Tuesday that “it wouldn’t be a great surprise if the GDP number was a small negative number”.

But he added: “It’s perfectly possible to think that the underlying growth position of the economy is stronger than the headline GDP numbers. In fact, I think that’s probably true.”

On the other continent, US continues with its ‘wait and watch policy’ and making no changes in its monetary strategy.  The central bank also did not change the forecast that “exceptionally low rates” will be here until late 2014. The officials said the economy is growing moderately and that the pace is likely to pick up in future.

“We see monetary policy as being approximately in the right place at this point,” Federal Reserve Chairman Ben Bernanke told reporters at a press conference. He also mentioned, “Our intention is to maintain highly accommodative stance of policy for the foreseeable future”.

News from UK and US were more or less on expected lines as all major economies of the world juggle between contraction and expansions.

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