BOE Cuts Growth Forecast, Holds Rate Steady at 0.5%

The transcript discusses the economic forecasts and implications of the upcoming UK referendum on EU membership. Bank of America Merrill Lynch's analysis suggests a potential economic slowdown, with the Bank of England lowering its GDP forecast. Inflation is expected to rise, leading to possible interest rate hikes. The outcome of the referendum is crucial, as it will significantly impact the economy, with PMI data indicating a slowdown in various sectors.

What is the predicted inflation rate at the two-year forecast according to the text?

What factors are influencing the Bank of England's decision on interest rates?