Under 2% target, if interest rates held constant.

  • GDP growth around 3.6% in 2 years assuming market rate path
  • Based on March budget projections, more demanding fiscal consolidation may be needed

That last comment wouldn’t have done sterling any favours. Cable down at 1.4910, about 80 points from post release level.

  • Pace of recovery uncertain due to uncertain QE/FX impact, euro zone demand, fiscal tightening
  • GDP risks up somewhat due to concern about countries’ budget deficits
  • Constraints on bank lending also weighing on growth, could also be pushing up inflation

Those will also have been noted.