News Summary: Bank of England sees recovery

GOOD NEWS, BAD NEWS: The Bank of England predicted a modest economic recovery for Britain, but tempered that with predictions that inflation will remain above its targets for the next two years.

BROAD RISKS ABROAD: The bank said the U.K. economy should pick up in the second quarter, and the main risks continue to come from abroad, since many European trading partners are in an economic downturn.

BACK FROM THE EDGE: The report was the first since data last month showed the U.K. managed to avoid a third recession since 2008 by growing 0.3 percent in the first quarter.