The Bank’s governor said the celebrations, which include an extra Bank Holiday on 5 June, are likely to hit output significantly, much like the Royal Wedding of Prince William and Catherine Middleton did last year, according to the BBC.
As a result, he warned the economy is likely to contract in the second quarter this year.
However, the economy overall will grow in 2012, said King in a speech to the House of Lord’s Economic Affairs Committee, expanding by 1% after a “zig-zag” of positive and negative growth.
Although the Jubilee, celebrating the Queen’s 60-year reign, is likely to dampen growth in Q2, analysts expect modest growth from the current quarter, following a 0.2% contraction in the last three months of last year.