Yael Selfin, Chief Economist for the United Kingdom at KPMG, stated that the Bank of England was cautious today, emphasizing ongoing upside risks and uncertainty in the medium-term inflation outlook. In addition to the expected recovery in economic activity, the Monetary Policy Committee's ability to ease rates next year will also be constrained by the challenges of the inflation backdrop. This will place the Bank of England in a unique position relative to other central banks in Europe (especially the European Central Bank). Due to potential inflation pressures remaining high over the next year, the Monetary Policy Committee is unlikely to change its gradual policy. We expect UK rates to decline by about 75 basis points to 4% next year.