Bank of England cuts UK growth forecast.Summary: Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. cuts UK growth prediction and warns of 'storm' from Europe.
The Bank of England has warned it will be at least 2014 before the UK economy returns to the levels it was at before the financial crisis.
It also cut its growth forecast for this year to 0.8 per cent from 1.2 per cent.
The Bank predicted the rate of inflation would not fall as quickly as previously thought, staying above the Government's two per cent target "for the next year or so".
Governor Sir Mervyn King
He also described the eurozone Eurozone
same as Euroland
Eurozone n → eurozona, zona euro
Eurozone n → zona euro as the greatest threat to the UK's recovery and warned of the "risk of a storm heading our way from the continent".
However, it is not all bad news, Sir Mervyn said he believed the bigger picture was one of gradual recovery in growth.
Independent Television News Limited 2011. All rights reserved.
Independent Television News Limited 2012. All rights reserved.
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