Wednesday, December 19, 2012

Bank of England offers glum outlook for 2013

he economy is likely to remain stagnant in the near term but inflation will probably exceed 2 percent in the next year and also faces further risks from higher food prices, Bank of England policymakers said on Wednesday.

After its December 5-6 meeting, the BoE's Monetary Policy Committee decided to keep its main interest rate at a record-low 0.5 percent and its bond purchases at 375 billion pounds as expected, with stubborn inflation trumping worries about a sluggish economy.