UK: Preview BoE Quarterly Inflation Report

MPC reasoning on the GBP 50bln extension of the QE program & any indication on future path Downward revision to GDP forecasts Inflation expected to remain below target on the two-year horizon Apart from scrutinizing the latest CPI and GDP projections from the Bank of England, markets will be firmly focused on the reasoning behind the surprise decision to extend the QE programme by a further GBP 50bln last week. Overall, the Bank’s governor Mervyn King is likely to take a cautious stance on