UK Today News: British Inflation Seen By Bank Well Below The 2 Years Target
The Bank of England forecasted on Wednesday that in a span of two years, the British inflation will fall well below its target of 2 percent, at the same interest rate at their record low, So even if the economy worsens, it will still leave scope for policy easing.
The central Bank in its August Inflation report, revised sharply its 2011 inflation forecast, but said the growth of price would rapidly slow to around 1.4 percent the year which follows when a January 1, 2011 increase in value-added tax falls out of annual comparisons.
A broad similarity was pointed out in May’s Inflation report containing the two year forecast.
While maintaining its 200 billion pound quantitative easing programme, a record low of 2 percent last week was left by the BoE.