MARKET TALK: Inflation Report Less Dovish Than In Nov -Newedge

Quarterly Inflation Report less dovish than in November, says Newedge, which doesn't think the QIR paves the way for further quantitative easing by the BOE in 2Q12. "[BOE Governor] King remains cautious on the developments of the EMU debt crisis and the possible effects on the U.K. economy. In our view, the MPC is currently in a wait-and-see mode and further action remains data-dependent," says Annalisa Piazza at Newedge. GBP/USD slightly lower than before the BOE press conference started, at 1.5682.