King: Diamond Jubilee to hit UK growth in Q2

Natalie Kenway
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The Queen's Diamond Jubilee celebrations will cause the economy to contract between April and June, the Bank of England's Mervyn King has warned.

The Bank's governor said the celebrations, which include an extra Bank Holiday on 5 June, are likely to hit output significantly, much like the Royal Wedding of Prince William and Catherine Middleton did last year, according to the BBC. As a result, he warned the economy would likely contract in the second quarter this year. However, the economy overall will grow in 2012, said King in a speech to the House of Lord's Economic Affairs Committee, expanding by 1% after a "zig-zag" of positive and negative growth. Although the Jubilee, celebrating the Queen's 60-year reign, is likely to...

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