Pound falls as King slashes growth forecast

The Bank revised its growth forecast for 2011 from 1.8% to around 1.5%, causing the currency to slide against the euro.  Shortly after the publication of the Bank's quarterly inflation report sterling was down nearly 1% against the euro, at €1.1294. The yield on the 10-year government bond also fell to a record low of 2.57%. Speaking about the report, the Bank's governor Mervyn King warned problems in the Eurozone could have a "significant impact" on the UK economy, adding the slowing global economy had already affected growth. He expected some of the impact from overseas would co...