Sterling has fallen after the Bank of England downgraded its growth forecasts for the UK economy while indicating it could start to raise interest rates in mid-2016.
In its latest quarterly Inflation Report, the central bank cut its projection for UK GDP growth for 2015 to 2.5%, from 2.9% in February. Governor Mark Carney (pictured) said although UK growth had been boosted by the European Central Bank's quantitative easing programme and strong consumer confidence, there are still significant headwinds such as slower productivity and supply growth, and the current account deficit. Carney said although the adjustments reflect a "moderately weaker outlook" there are signs economic growth is "set to re-accelerate" after a softer first quarter. "Eur...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
