Details out now. Presser at 12.30 GMT
- 2017 forecast +2.3% vs +2.6% prev f/cast in Nov
- 2018 +2.4% vs +2.5% prev
- inflation 2.05% in 2 years time
- UK domestic market resilient
- market interest rate assumption based on first rise around Q3 2017, RATES AT +0.8% by Q4 2018
Dovish tones to add to the MPC vote change from 8-1 to 9-0
GBPUSD falling, EURGBP rising. Pound to remain under a little pressure overall.
"The scale of recent commodity price falls means that CPI inflation is likely to remain below 1% until the end of the year. As the drags from energy and other imported goods unwind, however, domestic cost pressures are projected to build up sufficiently such that, conditioned on the path for Bank Rate implied by market interest rates, CPI inflation is likely to exceed the 2% target slightly at the two-year point and then rise further above it. This central projection for inflation is modestly below that of three months ago for much of the forecast period but broadly similar by the end.
The MPC judges the risks to the central projection to be skewed a little to the downside in the near term, reflecting the possibility of greater persistence of low inflation. There are significant judgements underlying these projections and a range of views among MPC members about the balance of risks to inflation relative to the best collective judgement presented in the February Inflation Report. At its meeting ending on 3 February, the MPC judged it appropriate to leave the stance of monetary policy unchanged. The MPC judges it more likely than not that Bank Rate will need to increase over the forecast period"
Full report here
Presser live-link here
