Wednesday, August 8, 2012

Bank of England expected to cut UK 2012 growth to zero-BBC

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8/7/12, "Bank of England expected to cut UK growth forecasts," BBC

"The Bank Of England is expected to cut growth forecasts close to zero from the 0.8% predicted in May as the double-dip recession intensifies.

The quarterly inflation report is likely to indicate no growth for 2012 compared with 2% predicted a year ago. Governor Sir Mervyn King is expected to be asked about a possible interest rate cut from the current record 0.5%....

The UK recession deepened between April and June, with output falling by 0.7%, official data released at the end of July showed.

The Office for National Statistics said the bigger-than-expected contraction, which followed a 0.3% drop in the first three months of the year, was largely due to a sharp slowdown in the construction sector."...


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