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Mervyn King, Governor of the Bank of England said that there were significant risks to inflation "in both directions'."?Photo: Bloomberg News

The Bank stated that 'inflation remained highly uncertain prospects' and therefore so did the Committee on monetary policy (PPC) future economic policy.

November inflation report, the Bank of England Governor Mervyn King said: "given the quantitative importance of different influences cuvée of the economy at present, it is difficult to judge how will evolve to inflation in the medium term and there are significant risks in both directions."

The report said that based on current monetary policy interest rate 0 5pc and ￡ 200bn facilitate quantitative (ve), the chances of inflation is above or below target 2pc Bank by 2013 were "almost equal".

Leave the door open to facilitate more quantitatively, the Bank said: "the most probable is that lower inflation target in 2013, but risks around this way deemed likely be skewed worms to the upside."

Sarah Hewin, Standard Chartered, Senior Economist said: "We the interesting thing is that inflation should enter below target in the year two... forecasting period on unchanged policy, suggesting that the Bank of England is leaving the door open for further quantitative easing".

The book is passed of a cent to $1.60, while the FTSE has continued to trade lower.

The Bank said that there was a wide range of views among the members of the CPC on the Outlook for inflation and growth in the United Kingdom normal.

Mr. King has said there is a risk that could slow consumption and construction spending, but the station believed that there is no "significantly slowing growth in the last two quarters."

The following meeting of November - PPC - report comes after that decision makers were divided in October, three ways with one Member voting for higher rates, a more supporting EQ and seven other keeping policy take.

Mr. King has suggested capacity of the CPC to shape future growth is limited by the direction of the wider global economy.

"If that recovery is maintained depends largely on the evolution of the situation in the rest of the world total spending by the public sector, are likely to grow more slowly,", he said.

Report forecasts of inflation of 1. 6pc over a horizon of two years, but it assumes that rising slowly, in accordance with the expectations of the marché.Fortecasts inflation in the short term interest rates have been revised more to take into account the increase in VAT 17. 20pc in January, as well as import cooler 5pc.

"That decreases the impact of these factors on inflation, inflation is likely to decline, reflecting continued pressure downward persistent margin capacity alternatives," said the Bank.

GDP growth expected to slow down next year with exports having failed to bounce as expected, but the growth may choose up to on 3pc within two years.

Booked unequivocally for future consumption levels of trust, the Bank said: "some households may not yet fully adjusted for future budgetary consolidation."

Jeremy Cook, Chief Economist at the first world, said: "monetary policy approach"wait and see"is still firmly in place and will need to wait for further economic news releases report if the recovery is faltering and additional EQ nécessaire.Je say the likelihood of further stimulus to the United Kingdom 40pc."

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