>> It's a warning, but not a strong enough one yet for markets to put their money on rate hikes anytime soon. Sterling actually falling after this statement.>> Monetary policy could need to be tightened by a somewhat greater extent over the forecast horizon than the very gently rising path implied by the market yield curve at the time of the forecast.
>> In other words, a market bet that rates might go up in late 2019 might be a bit too late. In the near term, though, any changes to policy are unlikely. Only one rate set are voted for a hike, more had been expected by some in the markets.
And monetary stimulus isn't excessive but appropriate, Carney said, despite the squeeze from above target inflation.>> And so this is going to be a more challenging time for British households over the course of this year. Real income growth, to use our terminology, will be negative.>> But Carney adding that wage growth will accelerate as inflation eases off.
The bank trimmed it's growth outlook this year to 1.9% though raised it for the two years after. Inflation will peek at 2.8% for 2017. Those forecasts assuming a smooth Brexit, the one thing many economists say the bank can't bet on.