Xinhua, London :
The Bank of England (BoE) Wednesday cut its prediction for Britain’s economic growth in 2015 from 3.1 percent to 2.9 percent and in 2016 from 2.8 percent to 2.6 percent.
In their Inflation Report published yesterday, the bank said expansion in British domestic demand has continued. But the outlook for global growth has weakened. Growth is projected to be a little weaker than in August.
The bank also emphasized the main downside risk stems from weaker euro-area activity, which would weigh on Britain exports and could be associated with a further rise in financial market volatility.
As lower food, energy and import prices, the country’s inflation could fall below 1 percent in the next six months.
Reports said the bank signaled a delay in interest rate rises. Interest rates need to stay at historic lows until next autumn to prevent inflation remaining below its 2 percent target, they added.
The Bank of England (BoE) Wednesday cut its prediction for Britain’s economic growth in 2015 from 3.1 percent to 2.9 percent and in 2016 from 2.8 percent to 2.6 percent.
In their Inflation Report published yesterday, the bank said expansion in British domestic demand has continued. But the outlook for global growth has weakened. Growth is projected to be a little weaker than in August.
The bank also emphasized the main downside risk stems from weaker euro-area activity, which would weigh on Britain exports and could be associated with a further rise in financial market volatility.
As lower food, energy and import prices, the country’s inflation could fall below 1 percent in the next six months.
Reports said the bank signaled a delay in interest rate rises. Interest rates need to stay at historic lows until next autumn to prevent inflation remaining below its 2 percent target, they added.
