Mark Carney, Governor of the Bank of England speaks during the quarterly Inflation Report press conference at The Bank of England in London, Britain November 3, 2016. REUTERS/Kirsty Wigglesworth/Pool
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The Bank of England scrapped its plan to cut interest rates and said borrowing costs could now move in either direction as the slide in sterling following the Brexit vote prompted it to ramp up its forecasts for growth and inflation in 2017 .It said then that another rate cut was likely this year if the economy slowed as it expected.Asked at a news conference about the sharp changes to the Bank's view on growth in 2017, Carney said that in "broad-brush" terms the Bank was sticking to its view made in August of what the economy will look like in three years' time.The Bank's forecasts showed it now expected a record overshoot of inflation above its target over the next two to three years, rising above 2.8 percent in early 2018, because of sterling's fall to a 31-year low against the U.S. dollar.Although the BoE raised its growth forecast for 2017, it revised down its 2018 growth forecast to 1.5 percent and saw growth of 1.6 percent in 2019 .
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