The Bank of England releases its quarterly inflation report - 8 February 2018
- 2.16% in two year's time
- 2.11% in three year's time
The BOE says that they are returning to targeting inflation at the two-year horizon. The readings above for two year's and three year's time are for Q1 respectively.
More details:
- Lifts 2018 GDP forecast to 1.8% vs 1.6% previously
- Lifts 2019 GDP forecast to 1.8% from 1.7% previously
- Cuts estimation of equilibrium unemployment rate to 4.25% from 4.5% previously
Prior release was here.
Nothing all too different from the inflation forecasts for 2019 and 2020, but sterling is rallying heavily on the back of the decision as the BOE says that they may raise rates earlier - and of course the upbeat forecast improvements on growth.
Cable's spike up stalls at the 100-hour MA (red line) for now:
Meanwhile, BOE governor Mark Carney has also released his letter to the Chancellor in explaining the reason for the increase in inflation when it crossed above 3.0% back in December here.
