Bank of England cuts UK growth forecast

Peace and Freedom

BBC News

The Bank of England has trimmed its UK growth forecast for 2017 this year, saying that household spending is slowing more quickly than expected.

It said consumers were being squeezed between sluggish income growth and rising inflation, and that could be seen in weak retail sales and a sharp fall in new car registrations in April.

The Bank trimmed its growth forecast to 1.9% from its previous estimate of 2.0% made in February.

It also held interest rates at 0.25%.

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Interest rates are set by the Bank’s Monetary Policy Committee (MPC), which is tasked with keeping inflation at 2%.

However, in its Quarterly Inflation Report the Bank raised its forecast for inflation this year to 2.7% from its February forecast of 2.4%.


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