Bad news from the Bank of England. The British central bank has cut its forecasts for the current year: GDP growth will be close to zero, contrary to the 0,8% previously estimated. Pessimism also affects the medium term: in 2014 the growth of the British GDP will travel at a rate of 2% against the 2,67% announced in May. In the second quarter, the UK economy recorded -0,7%: the biggest decline in the last three years. Since the end of 2011, England has entered a recession for the second time in the last four years.
Inflation forecasts are also bad. According to the central institute, in the short term, the price of money will reach 2,1% at the end of 2012, it could rise again but only slightly and then settle below the 2% target, around 1,6%, from mid-2013 forward.
"Prospects for UK growth remain uncertain," the Bank of England said. “The biggest threat to the recovery comes from the risk that an effective response will not be implemented quickly enough to the eurozone crisis.. To mitigate the slowdown, the BoE restarted a quantitative easing policy in July, with the intention of buying a further 50 billion pounds of British bonds over the next four months, thus bringing the total to 375 billion.
After the BoE's announcement, the Ftse Mib decreased by 0,60%. London also accelerates the fall to -0,55%. Frankfurt (-0,71%), Paris (-0,64%) and Madrid -2,10% were also affected.
The Btp-Bund spread is slightly up on yesterday's close at 453 points after Germany placed 4 billion 1,42-year Bunds at an average yield of 1,31%, up from the previous XNUMX% emission.
