Current rate 7.8%
Forward guidance
- jobless rate link based on ILO data
- jobless forecast uncertain
- expects jobless rate to stay above 7% until at least Q3 2016
- target level could be reached after forecast period
- breaching target will not trigger automtatic rate rise. will consider prevailing outlook
- short term market interest rates imply faster withdrawal of stimulus than appears likely
- BOE stands ready to buy more gilts if necessary. will not reverse QE
- will re-invest maturing gilts all the while jobless remains above 7%
- GDP Q3 forecasts +0.6% and +2.6% in two years, assuming interest rates at 0.5%
- guidance is subject to financial stability, medium-term inflation expectations
Quarterly Inflation Report
- sees inflation slightly below 2% in 2015
- CPI to peak at 2.9% in Q4 2013
- forecasts CPI wil be below 2.5% 18-24 months ahead
