BoE slashes growth forecast; blames euro zone
LONDON (AFP) - The Bank of England (BoE) on Wednesday slashed its forecast for growth this year in recession-affected Britain to close to zero per cent, saying the greatest threat to recovery came from the euro zone crisis.
Britain's gross domestic product (GDP) was predicted to be almost flat in 2012, down from the central bank's previous forecast of just below 1.0 per cent, according to a chart contained in the BoE's latest quarterly report.
The British pound and London's FTSE 100 shares index were little changed on the news as the revision had been widely expected by traders.
Analysts said the outlook signalled that further cash stimulus from the BoE was on the horizon as well as possibly a cut to the BoE's main lending rate - to near zero per cent - before the end of 2012.