The Bank of England has downgraded its GDP growth forecast for this year and expects inflation to rise above the 2% target. The bank's Monetary Policy Committee published its latest report, which outlined its predictions for inflation and the economy. The bank expects inflation to rise to 3.7% in the first half of this year, before falling back below target. It also downgraded its GDP growth forecast from 1.5% to 0.75% in 2025. The bank's report also included predictions for interest rates and the impact on mortgages and house prices.