Comments from Bailey
- We have to be very active about our monetary policy tools
- Prepared to wait to tighten rates
We've heard this before but it's always conditional and exploratory. The more they talk about it though, the more the market begins to think it's inevitable.
- We are not out of firepower at all
- I think there is a case for managing the BOE's balance sheet down during upturns
- If we carry on with QE as we did earlier this year it does pose questions about the BOE balance sheet
