Pound holds as IMF downgrades UK growth forecast

<p>The pound is steady in forex trading as the IMF has downgraded the UK’s growth forecast for 2013 and 2014.</p>

The pound was steady in early forex trading today (January 24th), after one major financial institution revised down the UK's growth forecast for both 2013 and 2014.

In this latest disappointing report on the state of the economy, the International Monetary Fund (IMF) cut its projection for expansion in the country this year to one per cent – 0.1 percentage point less than the organisation's October forecast.

And in 2014, the IMF now believes growth will reach 1.9 per cent, which is a 0.3 per cent downgrade from its previous projection.

The institution is more pessimistic about growth in the UK than the official figures delivered by the Office for Budget Responsibility, which anticipates growth of 1.2 per cent in 2013 and two per cent the year after that.

At 08:40 GMT, the pound was stable in trading both with the dollar and euro, with £1 buying £1.584 and €1.188.

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