British Central Bank Cuts Growth Forecast

English: The Bank of England offices in Leeds. (Photo credit: Wikipedia)

The Bank of England lowered its growth forecast Wednesday and predicted a slower exit from recession than foreseen just three months earlier, but its governor, Mervyn A. King, said the outlook should not prompt urgent new measures to stimulate the economy. “The underlying picture is that output has been at best broadly flat over the last two years,” Mr. King said at a news conference after the release of the central bank’s inflation report, which stressed the extent to which the British had felt the effects of the euro zone debt crisis. The report also said that output had contracted by seven-tenths of a percent in the second quarter of this year and that surveys now suggested that growth in the third quarter was likely to be weaker than the bank projected in May. In that forecast, the bank said overall growth for the year would be eight-tenths of a percent.. ... Continue to read.

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