UK inflation is expected to meet its 2% target in the next two years, according to Bank of England predictions.

In its latest inflation report, the Bank said Britain's consumer price index (CPI) would remain above target in the mid-term before falling back.

Inflation fell last month to 2.3% for the first time since September 2004.

The Bank also dampened expectations of a cut in interest rates by maintaining its forecast for a pick-up in growth in the UK economy next year.

Full details on the Bank of England Report can be found on: