INSTANT VIEW - Bank of England quarterly Inflation Report

LONDON (Reuters) - Following are economists' reactions to the Bank of England's quarterly inflation and economic growth forecasts and news conference on Wednesday.

In the report the bank said inflation will shoot up over the next year and remain above the 2 percent target in 2 years if rates fall by half a percentage point as markets expect.

LATEST COMMENT

GEOFFREY DICKS, RBS

"The central forecast based on constant 5% rates shows inflation peaking at around 3.7% later this year and falling back steadily to the 2% target at the two-year forecast horizon...."

"In principle the fact that inflation is at target and falling on unchanged rates gives the MPC some room for manoeuvre but the skew of the inflation distribution suggests they will be in no hurry to do anything. The message that comes out of the forecast is that rates are on hold for the foreseeable future.

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EARLIER COMMENTS

GEORGE BUCKLEY, DEUTSCHE BANK