Speaking on BBC radio. Deputy Governor Bean says the UK economy has probably hit the bottom of the downturn and that it is around the trough right now. He says we can’t be certain we are at a bottom and that is always the possibility of a nasty surprise. It will take a long time for banks to get back to lending like normal. It is inevitable that unemployment will rise further.
When the economy stabilizes, we can raise rates, Bean says. It is too early to say if quantitative ease has worked, he repeated.
Cable is consolidating gains it made late in the London session as equity markets made a decided turn to the topside. We trade now at 1.6165.
