The Bank of England is poised to sharply downgrade growth and inflation forecasts amid a weak economy hit by the eurozone crisis and slowing domestic demand. The Bank is expected to say in its August Inflation Report that the British economy will come to a standstill this year with virtually zero growth in 2012 as a whole, opening the door to more stimulus in the coming months. Just three months ago it was forecasting growth of around 0.7pc this year, as was the Government’s independent fiscal watchdog, the Office for Budget Responsibility. The new forecasts, to be presented by the Bank’s Governor Sir Mervyn King on ... (full story)