Outgoing Bank of England Governor Sir Mervyn King has said "the most durable lesson of the last 20 years is the overriding importance of basing monetary policy on serious economy analysis rather than politics or market mystique".
He added: "After 89 press conferences, 82 under the banner of the inflation report., I've had my say, now it's over to the next generation to have theirs"
Outgoing Bank of England Governor Sir Mervyn King has said there is a "welcome change in the economic outlook" for the UK and projected a "modest and sustained" recovery.
As he delivered his final inflation report, he predicted: "Growth to be a little stronger and inflation to be a little weaker than we expected three months ago.
"That's the first time I've been able to say that since before the financial crisis", he added.
"But this is no time to be complacent. We must press on to ensure a recovery and to bring down unemployment" ,he cautioned.
The Bank of England has raised hopes over the economy by predicting a "modest and sustained" recovery.
But outgoing Governor Sir Mervyn King warned that inflation will remain stubbornly high until at least the end of 2015.
IHS Global Insight economist Howard Archer said commodity price falls have "diluted upside risks". That could mean inflation peaking at about 3% during the summer, he said.
Outgoing Governor Sir Mervyn King could actually have a rare parting present of being able to deliver a report that does not contain higher consumer price inflation forecasts or lower GDP (gross domestic product) growth projections.
Indeed, Sir Mervyn may even be able to present a marginal downward revision to the consumer price forecasts although having higher growth forecasts may be pushing his luck.
Outgoing Bank of England Governor Sir Mervyn King could deliver a rare dose of economic optimism by nudging up the UK's growth prospects in his final inflation report today.
Economists believe recent encouraging signs from the economy could see the Bank hold or even lift growth forecasts, while it is also expected to trim its quarterly inflation forecast on the back of recent falls in oil and commodity prices.
Britain eked out growth of 0.3% in the first quarter and a recent trio of positive surveys for April showed improved growth from the service sector, near-stabilisation in construction and improvements in manufacturing.
The quarterly inflation press conference is Sir Mervyn's last before he hands over to new governor Mark Carney in July.
The outgoing Bank of England Governor Sir Mervyn King and his successor Mark Carney support the new remit for the Monetary Policy Committee outlined by the Chancellor.
Sir Mervyn wrote to George Osborne saying, "It is, in my view, a sensible change to previous remits and contains useful improvements to the framework".
The Bank of England's remit should not change to include anything other than the 2% target of inflation, the outgoing Governor Sir Mervyn King has told ITV News.
In the second of two exclusive interviews with Sir Mervyn, he said: "I'm not sure that there is any call for a major change in the remit."
He added: "What‘s most important is that we commit ourselves again to a very clear target for inflation of 2%."