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The UK had one of the world's fastest-growing advanced economies last year, but the Bank of England has forecast growth will slow in 2017 as higher inflation weighs on consumer spending. "We do see a slowing in the economy and household spending this year... that's a slowing, not a stopping," he emphasised. Economic forecasters have predicted that inflation could rise above the Bank's 2% target as a result of the pound's weakness since the Brexit vote. Click to see content: pounddollar160117 Sterling fell against most major currencies on Monday as markets anticipated that Prime Minister Theresa May would use a major speech on Tuesday to advocate a so-called "hard Brexit" in which the UK would leave the EU's single market and customs union. The UK was entering a "period of somewhat higher consumer price inflation", Mr Carney said. As a result, the next interest rate move could be either up or down, he said. "Monetary policy can respond, in either direction, to changes in the economic outlook as they unfold to ensure a sustainable return of inflation to the 2% target," he said. Inflation target The bank's remit recognised that bringing inflation back to target too rapidly could cause undesirable "volatility in output and employment", he added.