BOE gov still testifying to the TSC

  • MPC could cut rates, add to QE, shorten policy horizon to return inflation to target level
  • mon pol is providing stimulus, domestic demand positive


  • UK c/a deficit still very large, in part a side effect of weaker Eurozone economic performance
  • may need to run trade surplus for which weaker exchange rate is needed

Still no concerns over current or weaker pound keeps GBP on the back foot but off its lows.


  • number of structural adjustments needed for Chinese economy
  • China/PBOC aware and have resources to make it happen