Bank of England cuts growth forecasts
(ShareCast News) - The UK economy will grow slower in 2017 than the Bank of England predicted only three months ago, monetary policymakers revealed on Thursday.
The Bank's Monetary Policy Committee cut its 2017 forecast for gross domestic product to 1.7% from the 1.9% prediction made in May, with the forecast for 2018 trimmed to 1.6% from 1.7%.
With consumer price inflation rising to 2.6% in June from 2.3% in March, as the MPC had anticipated, the committee expects inflation to peak around 3% in October, as the weakness of the pound since the Brexit vote continues to pass through.
The BoE's long-term target is to keep the annual inflation rate at around 2%.
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