Bank of England monetary policy committee member Kate Barker says the risk of higher wage growth in 2009 has lessened, though it has not disappeared. She sounds a bit more flexible than some of her colleagues on the committee, noting real danger that financial turmoil will weaken the economy further.
Cable rallied after poor US figures but stalled just above 1.8600. Very strong selling was seen in the 1.8660/70 area overnight and those offers have been lowered to 1.8600/10, contacts in London report.
