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| Version 0 | Version 1 |
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| Bank raises 2017 UK growth forecasts | Bank raises 2017 UK growth forecasts |
| (35 minutes later) | |
| The Bank of England has raised its growth and inflation forecasts for 2017 and kept interest rates on hold at 0.25%. | The Bank of England has raised its growth and inflation forecasts for 2017 and kept interest rates on hold at 0.25%. |
| It now expects the economy to expand by 1.4% next year, with inflation set to surge to 2.7% - nearly triple its current level. | It now expects the economy to expand by 1.4% next year, with inflation set to surge to 2.7% - nearly triple its current level. |
| Growth of 1.5% is now forecast for 2018 - down from the previous 1.8% estimate. | Growth of 1.5% is now forecast for 2018 - down from the previous 1.8% estimate. |
| The revisions mean the Bank has changed its mind about when the UK economy will feel the impact of June's Brexit vote. | The revisions mean the Bank has changed its mind about when the UK economy will feel the impact of June's Brexit vote. |
| In the quarterly Inflation Report published on Thursday, the Bank warned that Britain's access to EU markets could be "materially reduced", which would hit economic growth over a "protracted period". | In the quarterly Inflation Report published on Thursday, the Bank warned that Britain's access to EU markets could be "materially reduced", which would hit economic growth over a "protracted period". |
| Analysts interpreted the Bank's statement as meaning the chance of an interest rate rise was becoming more likely. | |
| Paul Hollingsworth of Capital Economics said: "The stronger outlook for the economy than previously anticipated means that another rate cut now looks unlikely. Indeed, we think that the economy will continue to surprise." | |
| However, Paul Diggle, senior economist at Aberdeen Asset Management, said the lower growth forecasts meant "a rate cut might be back on the agenda before too long". | |
| Sterling was trading 1.5% higher at $1.2488 after the report was released, while yields on UK government bonds also rose. |