Bank of England: inflation report in brief
Here’s the main news from UK central bank’s quarterly inflation report:
- GDP growth is expected to accelerate to 0.5% in Q2 2013 (it was 0.3% in Q1).
- Inflation will reach its peak at 3.1% in Q3 2013 (it was 2.8%y/y in March).
- GDP growth is expected to accelerate to 1.7% in Q2 2014 and 2.2% in Q2 2015.
- CPI is seen above 2% for much of next 2 years.
- Forecasts assume financial crisis impact is slowly fading.
The Bank of England Governor Mervyn King declared a UK recovery is now “in sight”. Still, according to King said risks remain, in particular tensions in the euro area will make the recovery of British economy more difficult.