Posted: Feb 15, 2012 2:46 AM
Updated: Feb 15, 2012 4:18 AM
LONDON (AP) The governor of the Bank of England says that Britain's economy is likely to grow slowly this year in a "zigzag" pattern of quarterly gains and setbacks in output.
Introducing the Bank's latest quarterly Inflation Report, Mervyn King said Wednesday that spending cuts and tight credit conditions at home and the weakness of major trading partners abroad is holding back growth.
The Inflation Report forecast growth of 1 percent in 2012 and 1.8 percent in 2013.
King added that inflation, currently 3.6 percent, is likely to fall to the official 2 percent target by the end of the year, and be below target for much of the following two years.