Mark Carney
- Clearly exchange rate is important
- Have distinguished level effects of currency on the economy, inflation
- Real effects require persistent change in FX rate and we will use speeches news, conferences to make clear effect on exchange rate
- Sterling’s strength will affect how fast the increase in net exports happens
Thrice, he seems to be trying to avoid sticking his neck out over whether they see the currency as a problem at this current level
- Expansion will not endure with consumption alone, will need recovery in net exports (something we’ve mentioned many times here)
- Household spending can’t sustain GDP indefinitely
- BOE very aware of pressures home borrowers face due to past borrowing. We know the risks if underwriting practices slip
Asked about rising house prices in London
- We have to look at policy is for the UK not for particular cities (swerved the actual question on whether he see a bubble in London)
- BOE is not targeting specific asset prices, it is not our aim
