Speculation over the baby's name has been fevered ever since her birth in London on Saturday morning
The royal baby, who was born on Saturday May 2 at 8.34am, weighing 8lbs 3oz, will be known as Princess Charlotte.
The much-anticipated news was emailed to the media at 3.03pm and tweeted on the Kensington Palace Twitter account two minutes later.
A short statement read: "The Duke and Duchess of Cambridge are delighted to announce that they have named their daughter Charlotte Elizabeth Diana.
"The baby will be known as Her Royal Highness Princess Charlotte of Cambridge."
— Kensington Palace (@KensingtonRoyal) May 4, 2015
Speculation had been rife about the new princess's name since her birth on Saturday morning.
The Princess of Cambridge came into the world at the Lindo Wing of St Mary's Hospital in London with Prince William by her side.
The bookies' favourite names for the youngster were Alice and Charlotte, with thousands of punters placing cash on what Kate and Wills would choose.
Charlotte is likely to be a tribute to William's father the Prince of Wales as it is the feminine form of the name Charles.
And the middle names of the princess obviously recognise her great grandmother the Queen - Elizabeth II - and her grandmother Diana, Princess of Wales.
The name Charlotte had been a favourite with the bookies during the week but in the last few days had been pushed into second place by Alice.
The baby is fourth in line to the throne, knocking uncle Prince Harry down to fifth place, and because of new laws she will keep her place in the line of succession even if she has a younger brother.
Just like Harry, she will also grow up with the “spare” to the heir tag and be pushed down the line of succession when George grows up and has children.
A girl had been hotly tipped by the bookies throughout the pregnancy with thousands placed on William and Kate having a daughter.
She has received visitors including big brother Prince George, 21 months, Kate’s parents Carole and Michael, her sister Pippa and brother James and William’s dad Prince Charles and wife Camilla.
Experts have tipped a girl could be good news for the economy as, just like Kate, shoppers become inspired by her fashion.
Professor Joshua Bamfield, director of the Centre for Retail Research, said before the birth: “When the baby has a certain sweater on, everybody will want to buy that.
“The impact of the baby is going to be the longer period - particularly if it’s a girl - the equipment they use, her clothes, her toys.”
William and Kate announced they were expecting their second child on September 8, 2014, in an announcement made early because she was forced to cancel an official engagement because she was suffering from the same severe morning sickness she had with Prince George.
On October 20, 2014, following their 12-week scan, they announced they were expecting their baby in April.
This would mean the baby was likely conceived in August, which would coincide with the Duke and Duchess visiting Belgium for the WWI commemorations.
Once she was over the worst of her sickness Kate, 33, continued to carry out her official duties until her last day of official engagements before her maternity leave began on March 27.
In January, she said she could feel her unborn baby kicking.
She said: “It’s moving all the time. I can feel it kicking now.”
Just as they did with Prince George, Kate and William did not find out if they were having a boy or girl before their second baby was born.
Bookies were convinced the baby would be a girl and the favourite name was Alice, alongside Elizabeth, Victoria and Alexandra.
Before she went into labour William and Kate said they were “hugely grateful for the warm wishes they have received from people throughout the UK and indeed around the world over the last few months.”
A spokesman added: “They know that people are excited that Prince George will soon have a little brother or sister and it means a great deal to them that so many will be celebrating this important moment for their family.”
Once they leave hospital the Cambridges will spend the first couple of days at Kensington Palace before leaving for their country home Anmer Hall on the Queen’s Sandringham Estate in Norfolk.
William will take two weeks of paternity leave and Kate is not expected to be seen in public for much longer.
She will have help with the new baby from George’s Spanish nanny Maria Borrallo but the couple have said they are not intending to hire another nanny at this stage.
Source:Mirror
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