BoE set to cut growth forecast - papers

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....