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Currency Analyst since 2010

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.  

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