Britain's Bank of England Governor Mark Carney listens after delivering a speech at the London School of Economics in London, Britain, January 16, 2017. REUTERS/Toby Melville/File Photo
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The Bank of England boosted its forecast for British growth in 2017 and some rate-setters were more nervous about rising inflation, but the Bank overall seemed in no rush to raise interest rates as the economy adjusts to the prospect of Brexit.Significantly, the BoE also said its rate setters now believed the unemployment rate could fall to 4.5 percent -- down from its previous estimate of 5 percent and below the current rate -- before it starts to push up inflation.The BoE said it now expected economic growth of 2.0 percent this year, higher than economists had predicted and up a lot from its previous forecast of 1.4 percent.The new 2017 outlook towered above the forecast of 0.8 percent growth made by Bank in the weeks after the Brexit vote, when the economy seemed to be heading for a recession and the BoE cut interest rates to a record low of 0.25 percent.The BoE now expects inflation to peak at 2.75 percent in mid-2018 although many economists say it will exceed 3 percent.
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