BofE Inflation Report
The Bank of England just released its latest Quarterly Inflation Report. It forecast inflation to stay below the 2% for the next two years and the economy to shrink by around 5.5% at the lowest point in 2009 before beginning the recovery.
The reality of a deep recession and sluggish recovery has dawned upon the MPC, recognizing that insipid growth and downward pressure on prices is the greater concern. Overall, the monetary policy looks set to remain extremely loose for some time.
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