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| Bank of England upgrades economic growth forecasts | Bank of England upgrades economic growth forecasts |
| (34 minutes later) | |
| The Bank of England has upgraded its economic growth forecast and said that inflation should fall faster than had previously been predicted. | The Bank of England has upgraded its economic growth forecast and said that inflation should fall faster than had previously been predicted. |
| In his last inflation report as the Bank's governor, Sir Mervyn King said inflation should drop to its target of 2% within two years. | In his last inflation report as the Bank's governor, Sir Mervyn King said inflation should drop to its target of 2% within two years. |
| In February, the Bank forecast that inflation would only fall to 2.3% in the same period. | In February, the Bank forecast that inflation would only fall to 2.3% in the same period. |
| Inflation has been above the 2% target since December 2009. | Inflation has been above the 2% target since December 2009. |
| "Today's projections are for growth to be a little stronger and inflation a little weaker than we expected three months ago," Sir Mervyn said. | |
| "That's the first time I've been able to say that since before the financial crisis. | "That's the first time I've been able to say that since before the financial crisis. |
| "This hasn't been a typical recession and it won't be a typical recovery. Nevertheless, a recovery is in sight." | "This hasn't been a typical recession and it won't be a typical recovery. Nevertheless, a recovery is in sight." |
| Risks to the recovery | Risks to the recovery |
| The stubbornness of inflation to remain above target is one of the reasons why the Bank has not expanded its bond purchasing scheme, or quantitative easing. Doing so would push inflation higher. | The stubbornness of inflation to remain above target is one of the reasons why the Bank has not expanded its bond purchasing scheme, or quantitative easing. Doing so would push inflation higher. |
| But while the Bank said the outlook was slightly more rosy than it was three months ago, the underlining picture remained subdued. | But while the Bank said the outlook was slightly more rosy than it was three months ago, the underlining picture remained subdued. |
| "The economy is likely to see a modest and sustained recovery over the next three years," the Bank said, though it added that the recovery would "remain weak by historical standards". | "The economy is likely to see a modest and sustained recovery over the next three years," the Bank said, though it added that the recovery would "remain weak by historical standards". |
| Weak demand from the eurozone and the fact that figures show that France's economy shrank in the first three months of the year also prompted the Bank to note that the "main risks to the recovery continue to emanate from abroad". | Weak demand from the eurozone and the fact that figures show that France's economy shrank in the first three months of the year also prompted the Bank to note that the "main risks to the recovery continue to emanate from abroad". |
| Sir Mervyn is to step down from the post of governor when his replacement Mark Carney takes over in July. | |
| "I've had my say," he said. "Now it's time for the next generation to have theirs." | "I've had my say," he said. "Now it's time for the next generation to have theirs." |