Comment: Bank of England Inflation Report

British bond yields fell yesterday, despite an increase in the Bank of England's near-term inflation forecast. The Bank of England's latest Inflation Report also included a lower growth forecast for next year, which is expected to outweigh the effects of a temporary raise in inflation on monetary policy.

COMMENT BY CENTRALBANKNEWS

Essentially, yesterday's Inflation Report contained a mixed message. Under the central projection, inflation rises above the central bank's inflation target of 2% in the

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