Bank of England lowers British growth outlook

AFP, LONDON: The Bank of England yesterday trimmed its forecast for British economic growth this year, warning about potential risks from a slowdown in emerging markets.
Gross domestic product was predicted to grow 2.7 per cent this year, down from a previous estimate of 2.8 per cent given in August, the BoE forecast after holding its key interest rate at a record-low 0.50 per cent.
The central bank also downgraded next year's GDP growth forecast to 2.5 per cent from 2.7 per cent.
Policymakers meanwhile decided to freeze borrowing costs once again, against a backdrop of negative inflation in Britain. "The outlook for global growth has weakened" since the bank gave its previous forecasts in August, the BoE said in a statement.
"Many emerging market economies have slowed markedly and the committee has downgraded its assessment of their medium-term growth prospects.
"While growth in advanced economies has continued and broadened, the committee nonetheless expects the overall pace of UK-weighted global growth to be more modest than had been expected in August.

Bank of England lowers British growth outlook

AFP, LONDON: The Bank of England yesterday trimmed its forecast for British economic growth this year, warning about potential risks from a slowdown in emerging markets. Gross domestic product was predicted to grow 2.7 per cent this year, down from a previous estimate of 2.8 per cent given in August, the BoE forecast after holding its key interest rate at a record-low 0.50 per cent. The central bank also downgraded next years GDP growth forecast to 2.5 per cent from 2.7 per cent. Policymakers meanwhile decided to freeze borrowing costs once again, against a backdrop of negative inflation in Britain. The outlook for global growth has weakened since the bank gave its previous forecasts in August, the BoE said in a statement. Many emerging market economies have slowed markedly and the committee has downgraded its assessment of their medium-term growth prospects. While growth in advanced economies has continued and broadened, the committee nonetheless expects the overall pace of UK-weighted global growth to be more modest than had been expected in August.