UK growth forecast upgraded by BoE

<p>The UK’s growth forecast has been raised.</p>

The UK's forecast for economic growth has been upgraded in the latest Inflation Report by the Bank of England.

Sir Mervyn King, governor of the BoE, was delivering his last Inflation Report in the role before handing over to Mark Carney, the current governor of the Bank of Canada.

He explained projections for growth are now a little stronger and for inflation a little weaker than expected three months ago. "That's the first time I've been able to say that since before the financial crisis," Sir Mervyn said in his statement.

It is claimed that the UK's rate of inflation could now be down to its two per cent target within the next two years, when previous forecasts had suggested this will not happen until 2016 or later.

The pound rose 0.4 per cent against the euro to 1.1821 euros on the back of the positive economic data for the UK, while the FTSE 100 was up 0.2 per cent – a rise of 14 points on the start of the day – at 16:14 BST.

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