After another month of bad data for the UK, the Bank of England downgraded growth expectations for 2011 to 1.4%. Meanwhile inflation stands a “good chance” of hitting 5% by the end of the year.
This adds to expectations that BOE will follow the Fed toward further easing.
More headlines courtesy of CMC Markets:
*BOE SAYS U.K. GROWTH OUTLOOK WEAKER THAN MAY; RISK TO DOWNSIDE
*BOE SAYS GOVERNMENT FISCAL SQUEEZE TO WEIGH ON U.K. DEMAND
*BOE SAYS GROWTH IN EURO AREA LIKELY TO BE MODEST
*BOE SAYS RISKS TO GROWTH OUTLOOK SKEWED SLIGHTLY TO DOWNSIDE
*BOE SEES ANNUAL GDP GROWTH AT ABOUT 2.7% IN TWO YEARS
*BOE SAYS CPI MOST LIKELY TO BE ‘LITTLE BELOW’ 2% IN MED TERM