Mr Bean was discussing a wide range of topics at the Jackson Hole Symposium. (Wasn’t he also sent to LA a few years ago as an art expert?).

Many thanks to DH who is now going to sit in for a few hours.

Speaking at Jackson Hole, BOE deputy governor Bean said more monetary policy easing may yet bee needed.

Avoiding future crises in the credit markets will require central bankers and regulators to rely more on regulation than merely on monetary policy, Bean said.

The BOE is replacing the Financial Services Authority as the primary bank regulator in the UK…

The latest data on pay/wage deals in the UK suggests that growth has remained steady in the last quarter. The Monetary Policy Committee of the Bank of England pays close attention to wages information for signs of inflationary pressure.

Cable up at 1.5640 from a North American close Tuesday down around 1.5570.  Busy European morning session, cable as low as 1.5500 and as high as 1.5673.

Sterling experienced a decent relief rally after the Bank of England minutes were released.  Media speculation, that two members of the MPC had voted to  extend QE at the last meeting, proved wide of the mark.

Getting reports sell orders now clustered up at 1.5690 through to 1.5720.

• Surveys point to manufacturing strength in Q3
• Lower market interest rates should boost activity but offset by rise in GBP and weak credit
• Rise in cost of agricultural commodities suggest further inflation volatility
• Arguments for hike included improving economy, risk of rising CPI
• Arguments for easing included credit conditions, weak demand, budget measures

Cable has rallied after the release of the minutes, touching a high of 1.5600.

I’ll be interested to see the minutes of the latest Bank of England MPC meet, scheduled for release Wednesday.  Basically I’m interested to see the vote regarding QE amid speculation two members may have voted for it’s expansion. 

 I continue to be relieved that there apppears to be a healthy counter balance to Andrew Sentance and his call for tighter monetary policy.

3-way split at the MPC?  That would be interesting…….

Here are the headlines of the BOE inflation report.

Cable down another notch and has traded below 1.5700.

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