Bank of England Quarterly Inflation Report
The Bank of England released its quarterly report this morning, hot on the heels of yesterday’s news of a rise in inflation (to 2.1%) for the month of October and last Thursday’s interest rate decision (interest rates remain at 5.75%)
The Bank of England’s Monetary Policy Committee has indicated that in the short-term there is likely to be an increase in inflation and a slowing in growth with signs that, in the medium term, growth will again increase and inflation fall to within targets.
The MPC sees residential and commercial property values moderating and expects personal saving rates to impact upon consumer spending.
The report also made note of the instability in world markets due to the recent financial turmoil, predicting a cautionary approach to any future UK monetary decisions.