Queen's Jubilee will knock 0.5% off Q2 GDP, says King

The Bank lowered GDP forecasts for 2012 from 1.2% to 0.8%, with growth then rising to about 2.7% in two years' time. CPI inflation is now expected to trend towards the 2% target later this year, but may not hit that level until 2013, the Bank's forecasts suggest. GDP growth this year is expected to be impacted by a number of factors, including the extended public holiday in June. Bank of England governor Mervyn King said the forthcoming extra Bank Holiday for the Queen's Jubilee would knock around 0.5 percentage points off Q2 GDP, but suggested the effect of the London Olympics would ...