Consequently, the Bank has made moderate downward revisions to its core inflation forecast, projecting average rates of 5,5 per cent in 2015 and 5,1 per cent in 2016, versus rates of 5,7 per cent and 5,3 per cent, respectively, at the time of the November MPC meeting.
Furthermore, several factors may preclude the normal positive boost that a marked oil price decline typically provides to a country’s growth-inflation mix, highlighting the uncertainties surrounding these forecasts.