Bank of England Says Inflation May Miss Target in Slow Recovery
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The Bank of England said inflation may miss its 2 percent target as the economy endures a ``slow'' recovery and the risk that banks will limit credit.
The inflation rate will drop further and economic growth may resume on an annual basis by 2010, according to forecasts released by the central bank today in London. Its main predictions are based on current plans to spend 175 billion pounds ($288 billion pounds) in U.K. debt markets to aid the economy and market expectations of interest-rate increases.