BOE sees CPI below target much of forecast period

FRANKFURT (MarketWatch)
The Bank of England, in its latest quarterly inflation report, said Britain's annual consumer price inflation rate is likely to fall sharply in coming months and is likely to be below the central bank's 2% target for much of its two-year forecast period
The report warned that economic growth is likely to remain sluggish in the near term due to weak growth in the country's export markets and slowing activity in the euro zone
The Bank of England appears "to be backing up the markets' assumption that we won't see policy tightening for at least another two years," said James Knightley, economist at ING Bank. British annual inflation fell back to 3.6% in January from 4.2% in December