The latest Bank of England economic outlook now published 2 Feb
- CPI beg-2018 fcast 2.72% unch vs Nov
- beg-2019 fcast 2.56% vs 2.7% prev
- beg-2020 fcast 2.36% vs 2.49% prev
- inflation to peak at 2.75% in Q2 2018 vs 2.83% prev fcast
- fcasts based on market interest rates
- GDP to grow slightly to +0.5% qq in Q1 2017
- 2017 total GDP fcast +2.0% vs +1.4% prev
At first sight those reduced f/casts may add a bearish tone despite improved GDP growth forecasts but if their based on market rates it's probably factored in.
- sees delayed slowdown in real income growth for 2017, stalling in 2018
- ave weekly earnings fcast, in 2017 +3.0% vs 2.75% prev
- 2018 +3.25% vs 3.75% prev
- market interest rate assumption was based on first bank rate hike at end of 2018, market in recent days pricing in earlier hike
Full report here
Watch the presser live from 12.30 GMT here
As per my comment above re bearish tones and preview suggesting the bullish hype was ill judged GBPUSD down testing 1.2600 and EURGBP up to 0.,8575. GBPJPY also continues its retreat at 141.70
