LONDON (AFX) - The imbalances in Britain's "two-speed" economy of high retail spending and weak industrial performance will get worse, Financial Times reported, quoting Stephen Nickell, an external member of the Bank of England's monetary policy committee. Predicting more economic volatility, he describes prospects as "even more gloomy, even more two-speed". Nickell said the exports sector had "suffered a lot" from the strength of the pound, a position worsened by the global slowdown. But he acknowledged that by strengthening domestic demand, the MPC's interest rate cuts were worsening the imbalance between the traded and domestic sectors and increasing the trade deficit. He said there was a danger the current account deficit - now 19.2 bln stg - would weaken the pound and increase the uncertainty and potential volatility of the economy. On Friday the first official estimate of second quarter growth will be released. Economists expect it to have fallen to 0.3 per cent against 0.5 per cent in the first quarter.