Carney: inflation will return to 2% by 2017
Bank of England governor Mark Carney said inflation could return to its 2% target within two years.
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During a speech at the World Economic Forum in Davos, Carney said:
"We have a very low inflation environment right now largely caused by commodity prices and an ability to look through that.
"We have the means, the responsibility and the will to return inflation back to target in the two-year horizon."
He also said that the European Central Bank's quantitative easing programme would help to encourage spending and keep interest rates low, describing it as "absolutely necessary".
Earlier in the month, CPI fell to its lowest level since records began, growing by 0.5% in the year to December 2014.
The main contribution to the slowdown was due to a continuing drop in gas, electricity and motor fuel prices.
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