Bank of England predicts 1% growth for 2011
The Bank of England has cut its 2011 growth forecast to 1% and warned the economy could stagnate until the middle of 2012.
The governor of the Bank of England, Sir Mervyn King, advised the outlook for world growth has 'worsened' and predicted activity to be flat until the middle of next year. Growth in the next few quarters is likely to be worse than previously predicted in August, he said today.
The Bank of England’s November Inflation report stated CPI inflation rose to 5.2% in September, and continued to reflect the effects of the past increase in the standard VAT rate to 20% and in energy prices and other imported goods and services.