Highlights from the Bank of England Inflation Report:

• Sees CPI overshoot if rate reaches 4.5%
• Energy and import prices will push CPI up sharply
• Economic uncertainty may lead banks to curb lending
• Growth risks on the downside, CPI upside
• CPI may peak at 3.8%
• CPI will overshoot 2% target in 2 years

BOE Governor King follows:

• Rebalancing UK economy will be supported by fall in FX rates and cutting CPI to quickly can hurt the economy
• Economy is on bumpy road
• Inflation will return to target and growth will recover but needs to be patient