BOE’s Bean: Encouraging signs but considerable uncertainty

What is it with the British? So measures. So even handed…It’s infuriating…

BOE deputy governor Bean is doing the even-handed routine (he is an economist, after all), saying that there have been encouraging signs around the world on growth BUT there is considerable uncertainty about the strength of the upturn.We may be neart a trough in the economy is his most declarative statement.

Stimulus and a weak pound have helped economic activity but the banking system is restraining the economy, he says.

Governor King concurs, saying the weakness in the pound has made the UK more competitive.

Cable trades at 1.65, a relatively neutral rate and not far from where it traded befoe the wheels fell off the global financial system last fall.

EUR/US is consolidating in the 1.4050 area after falling sharply after the SNB bought USD/CHF earlier and the ECB lent EUR 450 bln to the market.