Bank of England cuts growth forecast

May 13, 2016
bank of england interest rate

The governor of the Bank of England Mark Carney yesterday delivered his monthly inflation report, he included the warnings about the economic risks if Britain votes to leave the European Union, this was jumped on immediately after by former Chancellor Norman Lamont who challenged his comments.

The central bank reportedly downgraded its forecasts for growth overall due to weaker productivity and higher household saving due to nervousness about the general economic situation, rather than global weakness or a lasting effect from the EU referendum.

The central bank  cut Britain’s growth forecast for this year to 2.0% from 2.2% in February, reflecting how uncertainty about next month’s referendum is already weighing on the economy.

The Bank of England’s Monetary Policy Committee voted unanimously to keep interest rates on hold  at a record-low of 0.5% percent this month.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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