She’s speaking at the Treasury appointment hearing in parliament
- Not being appointed to learn as I go
- Spent 3 years at the IMF analysing monetary policy
- Sees few signs of inflationary pressure in the UK
- Outlook for economy heavily dependant on remaining degree of slack which is highly uncertain
- Elements of spare capacity seems to have closed
- Expects BOE to lower forecasts of spare capacity in next revisions
- Bulk of spare capacity lies with people looking to work more hours
- Productivity gap looks to be more structural than cyclical, it’s still a puzzle
- Rates can state lower for longer if UK productivity improves
- Would be a mistake to divert monetary policy from primary objective just to deal with potential risk from housing market
- Would not want to see unintentional sharp tightening in monetary conditions as a result of gilt sales
