BoE cuts near term inflation outlook as strong currency bites

In its latest quarterly Inflation Report, the Bank of England has forecast inflation will remain low for longer than previously expected, as a result of weak energy prices and continuing currency strength.

For the first time since gaining independence in 1997, the Bank of England published its quarterly Inflation Report at the same time as the minutes of its Monetary Policy Committee (MPC) meeting, and the subsequent decision on interest rates. In the report, Bank of England governor Mark Carney (pictured) said he expects low energy prices and strong sterling to continue putting pressure on inflation for longer than previously expected. The report said: "By early 2016, past falls in the prices of food, energy and other goods will have largely dropped out of the annual inflation rate, in...