The Bank of England has trimmed its growth forecast for the U.K. economy and warned that inflation will remain above target for another year - assuming the country isn't knocked off course by turmoil in the eurozone.
In its quarterly Inflation Report released Wednesday, the Bank's Monetary Policy Committee reduced its growth forecast for this year from 1 percent just three months ago to 0.8 percent. It also abandoned a longstanding hope that consumer price inflation, now 3.5 percent, will fall back to the official 2 percent target by the end of the year.
Bank Governor Mervyn King says he now expects inflation to return to target in the second half of next year, and insisted the economy is broadly on course to recover despite sliding back into recession between October and March. The Bank still expects annual growth of 2.7 percent next year, compared to 3 percent in the February report.
Read more: Bank of England downgrades U.K. growth forecast - CBS News
No comments:
Post a Comment