The Bank of England slashed its growth forecast for the United Kingdom and hinted at further easing policies Wednesday in the Quarterly Inflation Report . Moreover, the Bank highlighted that it sees a risk of increased currency strength curbing growth, as euro depreciation seen since the recent flare up of the European Debt Crisis has caused the pound to strengthen, further restraining exports. These funding cost increases have occurred as markets speculate that domestic recession and spill-over from the European Debt Crisis are hurting U.K. banks.