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UK interest rate rise likely as GDP beats forecast to grow by 0.4%

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Services sector drives faster than expected expansion of economy in the third quarter

British consumers are being put on notice for a rate hike from next week, as official figures show the economy expanding faster than anticipated in the three months to September.

GDP grew by 0.4% in the third quarter of 2017 following expansion of 0.3% in the three months to June, according to the Office for National Statistics. City economists had forecast growth of 0.3%.

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