BOE QIR: Inflation and Growth forecasts lowered

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The Bank of England, in its Quarterly Inflation Report (QIR), revised the 2015 and 2016 growth forecasts lower and fired warning shot regarding the disinflationary impact of a strong Pound.

The QIR says, “CPI to remain below 1% until H2 2016 and model forecasts CPI 2017 at 2.1% based on market interest rates last week. Market interest rate assumption based on first rate hike in Q1 2017”

GDP revised lower

Lowers end of 2015 growth forecast to 2.7% from 2.8%

Lowers end of 2016 growth forecast to 2.5% from 2.6%

Weak CPI ahead

Lowers end of 2015 CPI forecast to 0.1% from 0.3%

Lowers end of 2016 CPI forecast to 1.2% from 1.5%

Lowers end of 2017 CPI forecast to 2.0% from 2.1%

End of 2018 sees CPI overshooting target at 2.2%

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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