LONDON (MNI) – The Bank of England cut its 2011 growth forecast
from 1.9% to 1.7% in its August Inflation Report, and predicted
inflation would come in at 1.73% two years ahead on market rates.
The detailed figures released today show that the BOE is expecting
growth to rise by 0.75% on the quarter in Q3, down from the 1% increase
they forecast in May, according to figures calculated by Market News
International.
The MPC publishes a “backcast” of growth which revealed it believes
Q2 growth was a little stronger than the 0.2% in the official data. The
implied Q2 growth rate was 0.3%.
CPI growth is expected to peak at 4.98% in Q4 this year before
falling sharply to 1.71% in Q2 2013.
–London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
