++NO CUTAWAYS AVAILABLE, SOUNDBITES SEPARATED BY BLACK++
London - 12 May 2016
1. SOUNDBITE (English) Mark Carney, Bank of England Governor
"Material slowdown in growth, notable increase in inflation - that's the MPC's judgment. It's a judgement not based on, it is a judgement not based a whim, it is a judgment based on a rigorous analysis and careful consideration. And it is the judgement of the independent MPC and it is the judgement of all members of the MPC, I'll make that very clear. Of course there's a range of possible scenarios around those directions which could possibly include a technical recession, could possibly include that. We haven't done a formal forecast."
2. SOUNDBITE (English) Mark Carney, Bank of England Governor
The recent behaviour of the foreign exchange markets suggests that were the UK to vote to leave the EU, sterling's exchange rate would fall further, perhaps sharply. This would likely be consistent with changes to some of the real fundamentals that drive sterling, including the terms of trade, productivity and risk premium. In isolation, a further fall in sterling would boost inflation over the policy horizon.
3. SOUNDBITE (English) Mark Carney, Bank of England Governor
"So this combination of influences on demand, supply and the exchange rate could lead to a materially lower path for growth and a notably higher path for inflation than in the central projections set out in today's monetary inflation report."