Still plenty of scope for Carney to act

In contrast to his usual gloominess at Inflation Report press conferences, Mervyn King bowed out of his final forecasting round on a much chirpier note than usual. But there is still a significant risk that the MPC is too optimistic about how quickly the recovery will take hold. Even if the recovery does pick up as the MPC expects, Mr Carney may well judge that he can push the economy to grow even more strongly without endangering the inflation target.