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Bank cuts growth forecast to zero

8 August 2012 Last updated at 22:27 BST

The Bank of England has cut its forecast for the UK economy this year.

In May, it had predicted growth of around 0.8% for 2012 - but it has now reduced that to almost zero.

The Bank's governor, Sir Mervyn King, also said that the future was unpredictable while "storm clouds from the eurozone" continued to roll in.

Stephanie Flanders reports.