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Bank cuts growth forecast close to zero

8 August 2012 Last updated at 12:40 BST

The Bank of England has cut its growth forecast to close to zero from the 0.8% predicted in May, as the double-dip recession intensifies.

Giving the Bank's quarterly inflation report, Governor Sir Mervyn King said recovery hopes had consistently been dashed.

He dismissed calls for an interest rate cut in the near term, saying it would damage some financial institutions, like building societies.

Sir Mervyn also said Britain's outlook depended on the impact of the eurozone crisis.