The BoE has cut its growth forecasts for the economy and said growth will reach about 3.2% in Q2 2011, which is weaker than its earlier prediction of 4%.

Governor Mervyn King said inflation will peak at 3.3% before easing to 0.9%. He will now have to write another explanatory letter to the Chancellor Alistair Darling.

He added that the economy would continue to “bump along the bottom”, although he was hopeful of a “gradual recovery” in output.

 

 

Sponsored

Episode 5: Larger Loans and Complex Lending: Powered by Partnership podcast from Newcastle for Intermediaries

Sponsored by Newcastle for Intermediaries