BOE’s King: Increase in sterling effective exchange rate since mid 2011 is not a welcome development

Everyone wants a weaker currency. Reflective of the times we’re living in.

Cable down around session low, presently 1.5858. 200 dma at 1.5851.  It’s what I call the moment of truth….

  • BOE pursuing an “extraordinarily high” degree of monetary stimulus
  • Not fair to say BOE policy toolbox empty, constraint from fact economy has to readjust
  • UK economy needs more demand from rest of world to buy UK exports (good luck with that one sport)

3 Comments

  1. So the BOE are doing an SNB and BOJ and verbally intervening eh? naughty naughty

  2. Good old Merv. Telling it straight and true as usual. He gave much gloomier opinion on the global picture than normal and the most important point he made was that the World economies will have to get used to this rut of flat lining growth for a long long time.
    This is the problem, especially in Europe, is that they think in a year or two’s time everything will be hunky dory, growth will be through the roof and will be back to pre 2008 levels.
    Next year will be a big year, not because of a remarkable improvement but because people will finally wake up to the fact that there won’t be an improvement.

  3. Good morning, Gerry. Did you notice that during the night, a central banker went MIA: http://www.bloomberg.com/news/2012-11-14/zhou-absence-from-communist-party-list-suggests-exit-from-pboc.html

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