The Bank of England revised its forecasts for near-term inflation, though they remain slightly above 2% at the end of the forecast horizon. Despite positive comments on the real economy from Governor Carney, markets see the risk of a rate cut later this year. Near-term forecasts for growth and inflation were revised down by up to 40bps each due to global economic concerns and falling oil prices. However, core inflation has risen, indicating that the fall in inflation is due to volatile external factors. The outlook for UK economic growth remains optimistic, with a 'continued solid expansion' expected.
documents/vol00010-efta01459724-pdf.pdf
{"title":"Focus Europe: Dark clouds, no storm yet","key_people":["George Buckley","Governor Carney"],"document_date":"2016-02-05","document_type":"correspondence","key_locations":["United Kingdom"],"document_subtype":"economic report","key_organizations":["Bank of England","Deutsche Bank"],"reference_numbers":["DB-SDNY-0120373","SDNY_GM_00266557","EFTA01459724"]}