Bank of England Inflation Report, February 2007

The Bank of England published its February 2007 Inflation Report on 14 February. At a press conference BoE governor Mervyn King highlighted that the outlook for inflation over the next year is "highly uncertain" due to the large cut in gas and electricity prices.

The BoE expects inflation to drop below the 2 pct CPI annual rate over the next 12 months before settling at that level over the medium term, if one more rate rise materialises as the market predicts. The central bank also said GDP

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