BoE inflation report

The Bank of England (BoE) governor, Mark Carney has lowered his forecast for growth and inflation levels. Consumer prices could slow down below 1% in the subsequent months and will return to the target 2% rate in 3 years.

The full inflation report can be obtained from BoE.

Chart 1
GDP projection based on market interest rate expectations and £ 375 billion purchased assets.

Chart 2 
CPI inflation projection based on market interest rate expectations and £ 375 billion purchased assets.

The charts above do no favour for GBP pairs. GBP/JPY may still be safe for traders with a long position as these projections are countered by the Bank of Japan`s monetary based expansion.