Mervyn King, the outgoing governor, has predicted lower inflation and better growth for the UK’s economy. In the Bank’s May 2013 Inflation Report opening remarks, King said:
there is a welcome change in the economic outlook. Today’s projections are for growth to be a little stronger and inflation a little weaker than we expected three months ago. That is the first time I have been able to say that since before the financial crisis.
Mortgage Strategy suggests that ‘better-than-expected GDP growth of 0.3 per cent in the first quarter of 2013 has inspired the Bank to increase its forecasts for the coming three years.’
King’s comments were tempered by his observation that, ‘our economy still faces the challenge of a substantial rebalancing following the abrupt reassessment of future incomes and spending opportunities triggered by the crisis. This has not been a typical recession, and it will not be a typical recovery.’
It might be too early to party, but it is always nice to get some good news from the BOE.