• 2012 GDP forecast to -0.6 to -0.2%
• 2013 -0.4% to 1.4%
• Midpoint of forecast cut to 0.4% from -0.1% in 2012, 0.4% in 2013 from 1%
• Economic risks are to the downside
• Inflation risks are balanced, though it is higher than expected at present