The Bank of England is today expected to lower its economic growth forecast for the UK and raise its expectations for inflation next year.
The revisions, expected in the Bank's quarterly inflation report published later today.will reflect the decision to increase VAT to 20% next year, the BBC reports. Downward revisions to growth forecasts may fuel fears of a double dip recession in the UK. In May, the Bank predicted growth of 3.5% in 2011 and forecast inflation to fall below its 2% target next year. The Office for Budget Responsibility (OBR) expects growth of 2.6% next year. Read more....
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