The Bank of England May Inflation Report-key quotes

On UK Inflation:

"The inflation rates of the most import‑intensive components of the CPI appear to have peaked."

"The MPC judges that the impact of the past depreciation of sterling on CPI inflation, while remaining significant, is likely to fade a little faster than previously thought. Taking external and domestic influences together, CPI inflation is projected to fall back slightly more quickly than in February, reaching the target in two years."

On UK GDP growth:

 "GDP is expected to grow by around 1¾% per year on average over the forecast period."

"Projected pace of GDP growth over the forecast is nonetheless slightly faster than the diminished rate of supply growth, which averages around 1½% per year."

On rates:

"The MPC’s central forecast, conditioned on the gently rising path of Bank Rate implied by current market yields."

"Projections are conditioned on a gently rising path for Bank Rate over the next three years."