British economy grows at fastest pace since financial crisis.

U.K. GDP increased 1.9% in 2013 in what was the quickest growth since 2007. However, GDP slowed a bit to +0.7% on quarter in Q4 from +0.8% in Q3 and the economy was still 1.3% below its pre-recession peak. "While the U.K. economy's performance in 2013 was well above expectations and encouraging, it needs to be borne in mind that the improvement has come from a low base," says economist Howard Archer, adding that the BOE places much emphasis on "headwinds that could still derail" the economy.