Broadbent into some Q&A

  • It's reasonable to expect the big deficit in primary income, part of the current account balance, to go away

  • Doesn't see much pressure from wage growth and unit costs
  • Won't say if he was one of the "some" close to considering reducing stimulus at the last MPC meeting
  • There's no material evidence of domestic inflation pressures (another one ignoring the core number, which jumped to 2.0% from 1.6% prior on Tuesday)
  • Weaker sterling has not been caused by monetary policy (Not entirely but it's helped plenty)

Not related to his comments but cable has slipped under 1.2500 by a couple of pips.

  • It's quite possible we could see rates go up in the UK (NSS)

  • Can see scenarios where BOE could raise ratesBOE forecasts are conditioned on a gentle rise in rates

  • We think strong caution in FX market will also apply quite a bit to investors that would otherwise invest in the UK because of weakening sterling