BoE says inflation will hit 0.5%

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

In its quarterly Inflation Report, the central bank predicted inflation well below the 2 percent target for the next 3 years if rates were to follow the path set by the market yield curve.

This assumes rates falling to a trough of 0.7 percent in the third quarter and only rising to just over 2 percent at the end of next year.

GDP is seen falling for most of this year before recovering at the end of the year.

The report is likely to boost expectations that the BoE will cut interest rates again next month after its 50 basis point reduction to a record low of 1 percent last week.

The central bank also discussed the efficacy of monetary policy once rates fall to very low levels and noted that the latest reductions were probably already having less impact.

It noted that it had been given the powers to raise the monetary base to boost demand but said there were still uncertainties over the strength of these channels.