According to the Bank Of England's revised forecasts, economic growth will be slightly reduced from what was originally thought and interest rates will nudge up going into 2016.
The Bank's take on zero inflation is that there is little to concern them. According to the Bank, zero inflation is largely a result of the sudden collapse in oil prices and it is expected to recover and like for like inflation figures will start to 'wash-out' these effects as the year progresses.
The Bank has reduced its forecast for economic growth for this year down from 2.9% to 2.4%. Amongst other facts the Bank puts this revision down to the new strength of Sterling and the UK's drop in productivity.
The Bank believes interest rate rises will begin modestly in early 2016 but only rising to 1.4% in 3 years from now.