BoE: Rates may need to rise more than markets currently imply

The Bank of England BoE believes the interest rates need to rise more than the marktes currently imply. The forecast expects 2 rate hikes over next 3 years. 

Key points

UK economy will remain sluggish

GDP forecast revised lower to 1.7% in 2017 and 1.6% in 2018

Currency depreciation effect seen having continued upward influence on inflation

Inflation will peak at about 3% in October, will slow to 2.2% in 2020

The bank has decided not to extend the Term Funding Scheme