Old Lady stays cautious in latest Inflation Report

The Bank of England maintained its delicate balancing act between emphasising the upside risks to inflation and signalling that it still has room to cut rates in its latest Inflation Report, published Wednesday 13 February.

The report indicated that the central bank's monetary policy committee is likely to back further reductions to bank rate but not to the extent that markets, which expect rates to fall by 103 basis points, predict.

The committee expects inflation to undershoot the inflation

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