• Any policy easing will increase risk of inflation
  • When we sell Gilts yields will rise and rates move higher
  • Bank lending would have been worse had we not done QE1, can’t guarantee lending will rise with QE2
  • Action to boost spedning /deamnd will help SMEs
  • EU outlook heavily effected policy decision, EU summit won’t solve problems, just provide 1-2 yrs breathing space