Bank of England alters forecast for economic growth

The Bank of England has lowered its forecast for economic growth and has raised its inflation expectations in its Quarterly Inflation Report released today. The news may add weight to the views of some experts who fear a double dip recession as a result of downward revisions. The Bank now expects the economy to grow at less than 3% in 2011, down from its previous forecast of 3.5%. It also expects inflation to stay higher for longer than expected, mainly due to the increase in VAT which will take effect from the start of next year.