BoE keeps rates on hold; Ups 2017 inflation forecast to 2.7% and downgrades growth

Expects above target inflation for three years

The Bank of England (BoE) has upgraded its forecast for inflation in 2017 from 2.4% to 2.7%, while it is projecting slightly slower GDP growth of 1.9%.

In its latest Inflation Report, the central bank has upped is projections for CPI in 2017, after inflation jumped above its target to 2.3% in February and March. However, it is projecting a drop to 2.6% in 2018 and to 2.2% in 2019, lower than previously predicted rates of 2.8% and 2.5%. In the report, the Monetary Policy Committee said: "The MPC expects inflation to rise further above the target in the coming months, peaking a little below 3% in the fourth quarter. "Through its effects on costs, the fall in sterling is likely to keep inflation above the 2% target throughout the nex...