Mark Carney Commits to the BOE and a Stagflation Outlook: Chart

(Bloomberg) -- Bank of England Governor Mark Carney says policy makers have to make a trade-off between growth and inflation when deciding how to steer the economy. With the pound having dropped and the outlook for prices changing rapidly, the balance of power in that relationship may be shifting. While the central bank could raise its forecasts for expansion on Thursday, it's also likely to predict a sharper acceleration in inflation, leaving it with a delicate policy balancing act ahead.

To contact the reporter on this story: Fergal O'Brien in London at fobrien@bloomberg.net.

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Lucy Meakin, Zoe Schneeweiss