The Bank of England released its quarterly inflation report and the picture isn’t too positive. Inflation forecasts have been downgraded significantly to 1.2% in 2014 and 1.4% in 2015 and growth prospects are also somewhat lower to 2.9% in 2015. GBP/USD makes its way down under 1.59 and continues lower. The pair is aiming to reach support at 1.5850. The low so far is 1.5857. Salaries This erases previous gains that came on top of accelerated wage growth in the UK. The report indeed says there are initial tentative signs of wage growth and it sees annual real wage growth reaching 2% by the end of next year. While the squeeze on wages still isn’t over, Carney sees encouraging signs. Higher wages are set to push CPI inflation back to target. Inflation Regarding inflation, the BOE also sees the inflation rate as likely to fall below 1% at some time within the next 6 months but overall it sees the 2% target as feasible within the 3 year forecasts period. The near term CPI outlook is definitely lower than the one reported in August’s inflation report. Imported commodities and lower demand weigh on inflation. In general, disinflationary pressures are coming from abroad. The appreciation of GBP has taken 0.75% off the CPI. Does Carney want a weaker pound? Growth Growth is expected to be subdued with downside risks coming from the euro-zone while the upside risks are due to come from the US. Rates While the BOE says it is appropriate that markets now expect easier monetary conditions than bank in August, tightening of monetary policy remains in prospect. Rates are currently at their lower bound and they are set to help inflation get back to target. Forecasts are based on market expectations for an initial rate hike in October 2015. The pace of rate increases is due to be gradual. On the euro-zone BOE governor Mark Carney says that the specter of stagnation is haunting Europe. Structural reforms are key to lifting Europe, and monetary policy cannot do the job alone. On the other hand, Carney states that there are no confidence effects on investment that result from the euro-zone stagnation. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next The Hollywood Indicator Guest 8 years The Bank of England released its quarterly inflation report and the picture isn't too positive. Inflation forecasts have been downgraded significantly to 1.2% in 2014 and 1.4% in 2015 and growth prospects are also somewhat lower to 2.9% in 2015. GBP/USD makes its way down under 1.59 and continues lower. The pair is aiming to reach support at 1.5850. The low so far is 1.5857. Salaries This erases previous gains that came on top of accelerated wage growth in the UK. The report indeed says there are initial tentative signs of wage growth and it sees annual real wage growth… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.