Bank of England Trims Britain Growth Forecast

Bank of England Trims Britain Growth Forecast

The Bank of England on Wednesday trimmed its forecast for British growth, citing economic strains in the neighbouring eurozone.

With the BoE predicting also lower inflation despite long-awaited wages growth, analysts said Britain’s central bank was unlikely to raise its record-low interest rate of 0.50 percent until late 2015.

Gross domestic product (GDP) is now forecast to expand 2.9 percent next year, down from a previous estimate of 3.0 percent, the bank said.

The BOE still expects expansion of 3.5 percent this year.

Britain, though not a member of the eurozone, counts the bloc as its main trading partner.

Elsewhere on Wednesday, official data showed that Britain’s unemployment rate held at 6.0 percent in the quarter to the end of September, remaining at its lowest level since late 2008.

The Office for National Statistics revealed also that British average earnings grew in real terms, outpacing the inflation rate for the first time since 2009.