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Capital Economics' Jonathan Loynes warned that expansion could be "rather weaker" than the Bank has forecast, even though it revised its expectations downwards for 2010.
It issued its Inflation Report last week, in which it stated inflation is expected to rise from 2.9 per cent to at least three per cent in the coming quarter - a jump that it said is a short-term anomaly.
"I don't think the economy will recover as quickly as they are suggesting," remarked Mr Loynes, adding that inflation will be kept low over the medium term due to the "large amount of slack in the economy".
Despite this, he added that he agrees with the Bank's general sentiment that the forecast rise in inflation will be temporary, something that may interest those investing on the stock market.
In its latest report, the Bank said that it now expects gross domestic product to total 3.2 per cent in 2011, down 0.8 per cent on its previous estimate.
Posted by Greg Secker
