The BOE is likely to have to cut rates again to offset the inflation undershoot that lays ahead, BOE Deputy Governor Charlie Bean says. Quantitative ease is likely to prove useful as rates approach zero. Sterling’s fall should encourage a rebalancing of the UK economy toward exports, he says. The BOE made its first purchases under its asset purchase facility on Friday, Bean said.
Cable trades at 1.4300 after falling at the Asian open as the G7 did not single out the weak pound for criticism as the EU would have liked.
