Bank of England to trim predictions THE Bank of England is today expected to cut forecasts for growth and inflation when it publishes its latest outlook for the UK economy. Its quarterly inflation report is also likely to cement the view that interest rates will remain on hold at 0.5 per cent well into next year. Two members of the monetary policy committee (MPC), Ian McCafferty and Martin Weale, have dissented from the majority view of the nine-member rate-­setting body by voting for a hike at the last three meetings. The central bank's most recent forecasts for GDP, which see the UK growing by 3.5 per cent this year and 3 per cent in 2015, are already more optimistic than other predictions. This week the CBI's latest economic outlook maintained its GDP forecast at 3 per cent for this year, but it has cut next year's expectations from 2.7 per cent to 2.5 per cent. Howard Archer, chief UK and European economist at IHS Global Insight, said: "Several members of the MPC have indicated recently that they have become more concerned over the UK's growth outlook in the face of eurozone weakness and a more uncertain global outlook. It is likely that the Bank of England will be bringing its 2015 GDP growth clearly below 3 per cent, but they will probably still keep it above 2.5 per cent. Inflation as measured by the consumer prices index is at a five-year low of 1.2 per cent, and falling oil prices and a supermarket price war have prompted speculation that it could fall below 1 per cent by the end of the year. That would force the Bank's governor, Mark Carney, to write a letter of explanation to Chancellor George Osborne.