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Sterling dips after data shows slower UK economic growth

BY Reuters | ECONOMIC | 02:06 AM EST

LONDON, Jan 16 (Reuters) - The pound fell on Thursday after data showed the British economy grew more slowly than expected in November, which could give the Bank of England more room to cut interest rates this year.

The Office for National Statistics said gross domestic product expanded by 0.1% in November, following October's 0.1% drop, and below forecasts in a Reuters poll of analysts for a rise of 0.2%.

The pound edged lower following the data to trade down 0.31% on the day at $1.2207, compared with around $1.222 right before the data.

Against the euro sterling was down 0.26% on the day at 84.29, from 84.18 pence before the GDP numbers.

The derivatives market is currently pricing in 58 basis points' worth of cuts from the BoE by the end of this year .

(Reporting by Amanda Cooper; Editing by William Maclean)

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