U.K. economic growth is set to remain subdued, while inflation is judged to be somewhat higher than expected three months ago, the Bank of England said in its quarterly Inflation Report published on Wednesday.
The BoE said prospects for U.K. growth remain unusually uncertain. Governor Mervyn King said the economy will continue to face headwinds during the forecast period.
According to King, the challenges within the euro area is the single biggest threat to the recovery. King said the path of recovery is likely to be slow and uncertain.
The BoE said the prospects for inflation are uncertain. Inflation is expected to remain above the 2 percent target for the next year or so.
"... the risks of inflation being above or below the target by the end of the forecast period are judged to be broadly balanced," the Report showed.
by RTT Staff Writer
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