Bank of England (BoE) Inflation Report

Bank of England Inflation Report is published quarterly. The report provides a detailed economic analysis and inflation projections upon which the BoE Monetary Policy Committee bases its interest rate decision.

This is a detailed document, which reflects the current financial and economic situation. The report is logically divided into chapters.

• The first chapter features the analysis of global economic and financial market developments.
• In the next chapter, the BoE provides the analysis of national demand and production, as separate descriptions of household consumption levels, housing market state, public sector spending, trade conditions and business investments.
• This is followed by consumption level prospects.
• The next large chapter concerns the development of prices. Consumer prices (as the main indicator of inflation) are considered separately, and the report contains a near-term outlook for consumer prices. In addition to the description of domestic and external cost pressures, the chapter contains data on inflation expectations.
• The final section of the report is devoted to prospects for inflation, demand and unemployment. Also, the main risks for the economy are described here.

Additionally, the report includes independent subsections (so-called boxes), which describe inflation pressure factors in more detail.

The Bank of England report is one of the key documents published by the regulator. It features the analysis of all factors influencing the development of inflation, and therefore, the BoE interest rate. Therefore, if the report contains favorable forecasts, this may have a positive short-term effect on the pound sterling quotes.