In an interview published on the website of the Nottingham Evening Post, BOE’s Bean says “There has been a strong upwards impulse from the relaxation of monetary and fiscal policy, and sterling is 20% lower than it was at the start of the crisis, which should boost exports.” but then goes on to warn “But working against that, the banking sector is still quite fragile, it still needs to de-leverage, and that will restrict the availability of credit in any upturn.”
Bean also repeats comments made last week, that the BOE was likely to raise interest rates before unwinding its asset buying programme when the economy recovers. The trigger for such a move will be the inflation outllook.
