Bank cuts UK growth forecast

The Bank of England cut its forecasts for British economic growth over the next three years yesterday. It cautiously backed bets in financial markets that it will only start to raise interest rates in around a year.

The central bank now expects growth this year of 2.5% down from a 2.9% projection in February and closer to most other economic forecasters’ expectations.

Britain was the fastest-growing major advanced economy in 2014, as it made up ground lost during the financial crisis, but the recovery has slowed since the start of this year.