By Paul Dobson Feb. 16 (Bloomberg) -- The pound weakened against the dollar and extended a drop versus the euro after the Bank of England said the consumer price index of inflation is likely to fall below its target in two years. The British currency slid 0.3 percent to $1.6077 as of 10:36 a.m. in London and was 0.7 percent weaker at 84.18 pence per euro. The bank’s central forecast is for inflation to peak at about 4.4 percent this year before easing to the 2 percent goal by the middle of 2012, and undershooting the target by the end of the forecast period, it said in its quarterly inflation report today. To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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