LONDON, May 24 (AFP) - The pound fell below 1.60 dollars and fell against the euro on Monday, after official figures showed that the British economy ground to a halt in the first three months of 1999. The dollar flirted with new highs against the euro but fell slightly against the yen on profit-taking. The pound was being traded at 1.5964 dollars (from 1.6021 dollars here late Friday). It was the first time since early April that the pound had fallen below 1.60 dollars. The euro was being traded at 0.6628 pounds (from 0.6600) and 1.0577 dollars (1.0570 dollars). The dollar was being traded at 123.66 yen from (123.99 yen). The British data rekindled the debate over whether Britain is heading for a recession and needs another cut in interest rates. The British economy is now expanding at the slowest annual rate since 1992, when it was just starting to pull out of a recession, the Office for National Statistics (ONS) said, as it revised downwards growth estimates released last month. In the first three months of 1999, gross domestic product (GDP) did not grow at all compared with its performance in the last quarter of 1998, and inched ahead just 0.6 percent in comparison with the first quarter of 1998. A strategist at Warburg Dillon Read stock brokers, Cameron Crise, said: "The market's adjusting to the probability of an interest rate cut, may be at next month's MPC meeting." She added that the market may have got "a little ahead of itself in its estimation of the strength and the depth of the UK recovery." The central bank, which has reduced interest rates six times since October, makes its next monetary policy decision on June 10. The euro fell close to its all-time low of 1.0541 dollars late in April, but dealers held back from major selling because most of the European markets were closed for public holidays. Analysts said that euro-zone interest rates may be cut further after the latest statistics pointed to a painful slowdown in Germany. A strategist at Barclays Capital, Jane Foley, said that "there are concerns that fiscal policy in Germany might have to be tightened, which, combined with a slowing economy, suggests that monetary policy will have to be loosened." The euro was being traded at 1.0577 dollars (1.0570), 130.77 yen (131.05), 0.6628 pounds (0.6600), 1.6018 Swiss francs (1.6075). The dollar was being traded at 123.68 yen (123.99) and 1.5148 Swiss francs (1.5180). Sterling was being traded at 1.5964 dollars (1.6021), 197.23 yen (198.64) and 2.4160 Swiss francs (2.4322). The gold spot price fell to 272.05 dollars an ounce from 272.75 dollars. -=-=- 