>> Fronting MPs for the Bank of England's quarterly inflation report. The bank's chiefs grilled on whether they had misjudged the impact of Brexit. After initially warning of a post-referendum crunch cutting interest rates, providing stimulus and downgrading growth to 0.8%, the bank raised expectations in November. And once again, last week, lifted forecast growth for the UK economy.
But Governor Mark Carney on Tuesday defended their moves.>> It's important that we did it, and I think that we just have to accept that we're never gonna get any credit for it.>> Reuter's Chief UK Economic correspondent Bill Schaumburg says the bank's forecasting was based on assumptions that proved short-lived.
>> The Bank of England does accept the way that it was looking at the economy in July and putting a lot of faith on these surveys perhaps needs to be reconsidered going forward.>> Questions, too, on the bank's view on how far unemployment can fall before it impacts inflation, summing the helps it justified keeping rates at record lows.
>> Basically, they think now that unemployment can fall as low as 4.5% without putting pressure on inflation, and that's quite a big chop from its previous assumption of 5%. The unemployment rate at the moment is 4.8%, so it does allow unemployment to fall further before they start worrying about inflation.
>> But with the economy continuing to tick along in the post-Brexit environment, the pressure has now flipped to the next interest rate move to be up, not down.