Well he hasn’t picked a very nice day to come to Essex, very dark and dreary.
- Recovery in level of economic activity likely to be relatively slow
- CPI likely to rise above 3% in New Year, spare capacity will help it fall below 2%
- Important not to make too much of MPC split. My preference to grow economy a bit less rapidly (he’s joking right?, what growth?)
- All MPC were of view in November large stimulus still needed to be kept to meet inflation target
- No strong evidence QE has led to undesired asset price rises, but must be alert to risks
- Need substantial reduction in fiscal deficit, structural adjustments need to occur in economy