Pound falters as BoE anticipated to downgrade growth forecast

<p>Sterling has retreated as economists anticipate the BoE to downgrade its 2013 growth forecast.</p>

The pound has faltered in forex trading this morning (February 13th), as the Bank of England (BoE) is widely expected to downgrade its forecast for economic growth in the UK today.

Economists predict the governor of the central bank Sir Mervyn King will declare a gloomy outlook for the nation, with matters such and the ongoing challenging economic situation and rising inflation keeping their grip on Britain's fiscal health.

In an unexpected statement to support its decision to maintain interest rates at their record 0.5 per cent last week, the BoE's Monetary Policy Committee warned that inflation is likely to increase in the months to come and may remain above the target of two per cent for another year.

The BoE revised its growth in 2013 prediction to one per cent, while the central bank's forecast of of 0.5 per cent growth in 2012 was proved wrong after a 0.3 per cent contraction in the fourth quarter was logged.

At 10:25 GMT, the pound continued its dismal downward trend by slipping to $1.564 and €1.161.

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