The Latest: Bank of England cuts UK growth forecasts

By The Associated Press | Posted - Aug. 3, 2017 at 5:47 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

LONDON (AP) — The Latest on the Bank of England's decision to keep interest rates at a record low (all times local):

12:25 p.m.

The Bank of England has cut it forecasts for Britain's economy, saying it expects growth to remain "sluggish."

The central bank cut its annual growth estimate for 2017 to 1.7 percent from 1.9 percent previously, and for 2018 to 1.6 percent from 1.7 percent.

The bank's Monetary Policy Committee voted 6-2 to keep the benchmark interest rate at a record low 0.25 percent amid uncertainty about Britain's economic prospects as it prepares to leave the European Union.

The bank said in a statement Thursday that "GDP growth remains sluggish in the near term as the squeeze on households' real incomes continues to weigh on consumption."

Some economists had called for a rate increase after inflation accelerated to 2.9 percent in May, well above the bank's target of 2 percent. But the rate dipped to 2.6 percent in June, easing pressure for a rise.

___

12:00 p.m.

The Bank of England has decided to keep interest rates at a record low 0.25 percent after slowing inflation damped the clamor for an increase.

The bank's Monetary Policy Committee voted to keep rates on hold amid uncertainty about Britain's economic prospects as it prepares to leave the European Union.

Some economists had called for a rate increase after inflation accelerated to 2.9 percent in May, well above the bank's target of 2 percent. But the rate dipped to 2.6 percent in June, easing pressure for a rise.

The decision came just after a report on Thursday showed Britain's dominant services sector recovered slightly last month. The Markit/CIPS services purchasing managers' index rose to 53.8 points in July, from a four-month low of 53.4 in June.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast