Published by Jamie JemmesonThe British pound has risen on the foreign exchange market after official figures revealed 0.5 per cent growth in GDP.Service industry growth in particular was strong, the figures showed, helping the pound to reverse declines against both the dollar and the euro.Initial analyst estimates had predicted GDP growth of around 0.5 per cent, but early trading before the figures were released saw the pound drop on the view that growth may be weaker, at around 0.3 per cent. The figure offered some kind of relief to traders.Following the GDP data release, bets increased that a Bank of England interest rate increase may come by August, although predictions for a May rise remain limited.April's Monetary Policy Committee meeting minutes reveal ongoing concern over downside risks to the economy, supporting the view that a rate rise will come later rather than sooner.A number of experts believe a rate rise will come towards the end of the year, but suggest that continued strength may mean a change is introduced over the summer.For more information on international payments, visit our Smart FX site