The Latest: Bank of England cuts UK growth forecasts

LONDON

LONDON (AP) — The Latest on the Bank of England’s decision to keep interest rates at a record low (all times local):

12:25 p.m.

The Bank of England has cut it forecasts for Britain’s economy, saying it expects growth to remain “sluggish.”

The central bank cut its annual growth estimate for 2017 to 1.7 percent from 1.9 percent previously, and for 2018 to 1.6 percent from 1.7 percent.

The bank’s Monetary Policy Committee voted 6-2 to keep the benchmark interest rate at a record low 0.25 percent amid uncertainty about Britain’s economic prospects as it prepares to leave the European Union.

The bank said in a statement Thursday that “GDP growth remains sluggish in the near term as the squeeze on households’ real incomes continues to weigh on consumption.”

Some economists had called for a rate increase after inflation accelerated to 2.9 percent in May, well above the bank’s target of 2 percent. But the rate dipped to 2.6 percent in June, easing pressure for a rise.

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12:00 p.m.

The Bank of England has cut it growth forecast for Britain’s economy, saying it expects growth to remain “sluggish.”

The bank cut its estimated of the gross domestic product’s growth to 1.7 percent in 2017 and 1.6 percent in 2018.

The bank’s Monetary Policy Committee also voted 6-2 to keep rates at a record low 0.25 percent amid uncertainty about Britain’s economic prospects as it prepares to leave the European Union.

The bank said in a statement Thursday that “GDP growth remains sluggish in the near term as the squeeze on households’ real incomes continues to weigh on consumption.”

Some economists had called for a rate increase after inflation accelerated to 2.9 percent in May, well above the bank’s target of 2 percent. But the rate dipped to 2.6 percent in June, easing pressure for a rise.

Categories: International News