As a result, inflation forecasts are about half the 17 percent originally expected.

Growth rate of around 1pc next year, inflation forecast also cut.

"This is going to cause us to take a real hard look" at revising upward the bank's inflation forecast, he added.

If my inflation forecast works out there will be no pressure on the Fed to push interest rates higher and produce a recession.

Almost all his figures so far have been wrong, inflation forecast in the budget 2.7% being an example.

It said inflation forecasts among the 56 economists polled were lower than its last survey, in June.

The bank's growth and inflation forecasts are predicated on lower average oil prices.

Consequently, it is based on inflation forecasts rather than current inflation.

In particular, it was decided not to follow a strategy under which monetary policy decisions would be made solely on the basis of inflation forecasts.

The governor writes a letter once a quarter rather than every month, which ties in with the Bank's quarterly inflation forecasts.