The BoE in the report explains that "The level of output is not likely to surpass its pre-crisis level until 2014" and on inflation (CPI) "On balance, the Committee’s best collective judgement, based on the conditioning assumptions described above, is that inflation is a little more likely to be below than above the 2% target for much of the second half of the forecast period, but those risks
The Bank of England clearly seems concerned and uncertain about the outlook both in the UK and the eurozone. It is interesting to note that it has excluded "the most extreme possibilities associated with developments in the euro area" from the fan charts. As all their fan charts portray a wide range of possibilities, we assume these extreme possibilities related to the euro zone were excluded as to avoid having to formally recognise them in their model and hence to avoid head lines in the press. By ommitting these potentially extreme outcomes, the BoE has in effect rendered their models useless (or more useless, as most models regarding the future are). Therefore, do not rely on their forecasts for investment purposes and whatever you do, make sure to incorporate the worst possible outcomes as well in your model.