BOE upgrades economic forecast, says 7% unemployment achievable by H2 2014.

In its quarterly inflation report, the Bank of England pulled forward its expectations for when unemployment could hit the 7% threshold at which point a rate hike would be considered. The central bank now says the jobless rate could fall to 7% by H2 2014 versus previous guidance of mid-2016. The BOE also upgraded its outlook for the U.K. economy, saying 2014 growth should come in around 2.8%.