Pound's fall more important for inflation than strong economy - BoE's Carney

LONDON (Reuters) - Bank of England Governor Mark Carney said on Thursday the fall in sterling since June's Brexit vote had more significant implications for inflation than strong growth in the economy for the rest of 2016.

Carney also said Britain's relationship with the European Union will be the biggest driver of its prosperity in the medium term, and that the fall in sterling appeared to reflect market expectations of a less open trading relationship with the EU.

Earlier, the BoE hiked its forecasts for inflation and economic growth next year, while leaving interest rates on hold. [BOE/INT]

(Reporting by David Milliken and William Schomberg, Writing by Andy Bruce; editing by Stephen Addison)