If you want to know on what the Bank of England based last week’s decision not to extend quantitative easing beyond £200bn, here it is: the February Inflation Report.

And it looks like the Bank’s infamous UK GDP fan-chart is as wide as ever but, importantly, it’s sliding down the scale. Whereas the central bank was once forecasting economic growth in the region of 0 to 7 per cent, it’s now forecasting something like negative 1 per cent to 6 per cent:

Inflation expectations, however, remain pretty much unchanged:

Related link:
UK inflation fan-dango – FT Alphaville

This entry was posted by Tracy Alloway on Wednesday, February 10th, 2010 at 11:08 and is filed under Uncategorised. Tagged with bank of england, gdp, inflation, interest rates, quantitative easing. Edit this entry.