Corporate banking experts worry as Bank delivers forecast?

Corporate banking experts may not have greeted the Bank of England's inflation and growth forecast with eagerness, as the governor painted a bleak picture of British finances over the next 12 months.

Mervyn King downgraded the expansion forecast and raised the inflation prediction, setting off a string of negative reactions in trading and currency markets.

Those in corporate banking may have gloomy expectations for the coming year as the Bank continues to favour quantitative easing strategies and fiscal tightening does not appear to be on the horizon.

The pound plummeted on Forex markets following the financial expert's comments, losing one per cent against the dollar and dropping to 83.05p per euro, from a previous value of 82.87p.

Mark Bolsom, head of the UK trading desk at Travelex Global Business Payments remarked: "Today's Quarterly Inflation report has been a bit of a reality check."

In May, the central bank had predicted growth of around 3.6 per cent in its 24-month forecast, but experts may no longer be so optimistic. ADNFCR-2318-ID-800020922-ADNFCR