BoE lowers growth forecasts, sees inflation hitting target mid-2018

The BoE lowered its growth projections slightly to 2% in 2016, and 2.3% in both 2017 and 2018, from 2.2%, 2.4% and 2.5% respectively, citing slower productivity growth and weaker spending by consumers, the Inflation Report showed.

The MPC expects to hit its 2% inflation target in mid-2018, but sees inflation then exceeding target.

“Consistent with the MPC's usual convention that government policy is followed, the projections in this Report are conditioned on an assumed continuation of EU membership, so that weakness in activity starts to unwind in the second half of the year.”