Bank Of England Lowers Growth Forecast, Warning Of Austerity Pain

bank of england from WIKI

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