BOE Slashes U.K. Growth Forecast As EM Slowdown Bites

The Bank of England on Thursday cut its growth forecast for the U.K. for 2015 and 2016, citing concerns over an economic slowdown in emerging markets. In its Quarterly Inflation Report, the central bank said it now sees 2015 growth of 2.7%, down from 2.8% projected in the August inflation report. For 2016, the bank cut its forecast to 2.5% from 2.7%. "The outlook for global growth has weakened since the August Inflation Report. Many emerging market economies have slowed markedly and the Committee has downgraded its assessment of their medium-term growth prospects," the BOE said in the report. The central bank also indicated it's in no rush raise interest rates as inflation is likely to remain below 1% until the second half of 2016. The bank's inflation target is 2%. The pound slumped after the report was released, buying $1.5291 from $1.5390 ahead of the news.