FTSE in the RED, page-2

probably somethin to do with the growth rate cuts:

London, Aug. 7 (Bloomberg) -- The Bank of England cut its forecasts for growth and inflation, suggesting policy makers will keep their key lending rate at a 38-year low in coming months.

The economy will expand at an annual pace of about 2.5 percent through 2003, the U.K. central bank said, lowering a May forecast of about 3 percent. Inflation will probably remain below the government's 2.5 percent target for two years, the bank said.

Risks to growth are on ``the downside,'' the bank said in its quarterly assessment of Europe's second-biggest economy. ``The outlook is for continued recovery in world demand, but at a somewhat slower pace than anticipated in the May report.''