View more on these topics

Bank of England set to downgrade growth and inflation forecasts

Bank of England BoE Bank 480

The Bank of England is set to downgrade its growth and inflation forecasts as the eurozone crisis and slowing domestic demand continue to hit the UK economy.

The BoE is  expected to reveal in its August inflation report on Wednesday that the UK will have almost no growth in 2012, a marked fall from the 0.7 per cent forecast made in its May forecast.

The forecast, which will be presented by Governor Sir Mervyn King, will also downgrade growth to 1.5 per cent in 2013, down from the 2.1 per cent forecast in May.

According to The Telegraph, King is also likely to say that falling oil and commodity prices and a slowing economy will pull inflation down faster than forecast.

The Bank is expected to say annual inflation will fall below the 2 per cent target by the end of the year, from its current level of 2.4 per cent..


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm