BoE: now sees inflation exceeding its 2% goal by Q2 2017 - ANZ

Analysts at ANZ noted that with inflation now dominating growth forecasts, growth was taken down slightly over the medium term, but raised over the short term.

Key Quotes:

"Crucially, the BoE now sees inflation exceeding its 2% goal by Q2 2017 and staying above that level through its forecast period. It said inflation will be at 2.5% in late 2019, the biggest three-year overshoot it has ever forecast.

The Bank also said there are “limits to the extent to which above- target inflation could be tolerated”. The Bank also published an analysis of the impact of the weaker pound on exports. It said the size of the effect wasn’t certain as it would depend on how EU negotiations unfold."