By Marcus Leach

The Bank of England (BoE) are expected to cut the UK growth forecast on Wednesday as the fallout from the recent market panic continues.

Further to that they will, unsurprisingly, signal that the historic low interest rate will remain at 0.5% for the foreseeable future in the face of ongoing economic troubles.

There is also the chance of another round of quantitative easing as the quarterly inflation report is released by the BoE.

"The Bank of England is also likely to indicate that it is keeping the door open to more quantitative easing, particularly if the heightened financial turmoil persists," Howard Archer, economist at IHS Global Insight, told The Independent.

Mr Archer went on to say that due to the rising prices at leading utilities companies the BoE are likely to raise the its near-term consumer price inflation forecasts to more than 5 per cent.

However, it is expected that the forecast for inflation to return to the 2% target level after two years will remain the same as the impact of a higher VAT price continues.

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