Bank of England downgrades inflation forecast

UK - The Bank of England said today it was ready to cut interest rates, reversing its position three months ago when it expected to put up the cost of borrowing.

Mervyn King, the Bank's deputy governor in charge of monetary policy, said the bank had lowered its assessment of growth and inflationary risk on Wednesday because the steep fall in equity prices was likely to slow the speed of recovery.

His remarks came amid growing speculation that the Federal Reserve is likely to cut interest rates