Bank of England cuts growth forecast

The Bank of England has downgraded its growth forecast.

The Bank said in its quarterly inflation report Wednesday that it now predicted growth of 1.4 percent this year.

It says inflation in Britain has a "good chance" of hitting five percent this year, well above its two percent target.

Governor Mervyn King said Wednesday that the global economy has deteriorated, with the biggest risks coming from the eurozone.

The Bank of England said it expects GDP growth to be around 2.7 percent in two years.

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