Central Banking

Bank of France cuts growth forecast

The Bank of France has lowered its first quarter growth forecast for the French economy by 0.1 points to 0.4%.

It also reported that its index of business confidence had fallen to 101 in February from 105 in January.

If the economy continued functioning at current levels, with no further expansion, growth for the whole of 2005 would be 1.1%, the bank said.

Business leaders interviewed by the bank for the confidence index said that industrial activity had remained flat for the second month in a row.

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