Carney: Economic outlook 'clouded by Brexit'

Cuts inflation and growth forecast for Q2

The Bank of England (BoE) has downgraded its predictions for inflation and economic growth in Q2, as the prospects for the UK economy remain "clouded by Brexit uncertainty".

In its May Inflation Report, the BoE revised its projected GDP growth expectations for the second quarter of 2018 down from the February estimate of 1.8% to 1.4%, while predicting inflation will fall to 2.4%, rather than 2.7% as previously forecast. The UK's Consumer Prices Index (CPI) fell yo 2.5% in March, the lowest rate in a year, and although the Office for National Statistics is yet to publish data for April, the Bank's Monetary Policy Committee voted 7-2 to keep interest rates at 0.5%, anticipating inflation would fall back to its target of 2% more quickly than anticipated. The...