No growth this year, says Bank

The Bank of England has cut its growth forecast to almost zero from the 0.8% predicted in May, as the double-dip recession intensifies.

The Bank's quarterly Inflation report indicated almost no growth for 2012 compared with 2% predicted a year ago.

The data has fuelled anticipation for fresh stimulus measures, including an interest rate cut to another all-time low from the current 0.5%.

Governor Sir Mervyn King also said that the future was unpredictable, since no-one could predict what would happen in the eurozone crisis, which would have an impact on the UK.

“It’s a saga that goes on, and on, and on. [The idea] that we have come to the end of it is unrealistic. There’s still a long way to go,” he said.

www.bbc.co.uk/news/business-19174649

www.bankofengland.co.uk/publications/Pages/inflationreport/ir1203.aspx