• Inflation likely to rise sharply in the short run
• Recovery will be soon underway
• Spare capacity will pull down on inflation in medium termNot sensible for monetary policy to respond to one-off price level effects
• Powerful forces continue to restrain spending
• Uncertainty about incomes, profits make households, firms reluctant to spend
• Long way to go in bank deleveraging
• Encouraging sign of recovery overseas, but demand still well below pre-crisis level
• Should expect pretty buoyant growth rates in short run after deep recession
• Someway to go to convince international colleagues that they cannot allow banks too big to fail
• How fast UK debt reduced depends on path of economy
• Need a credible plan to bring down deficit over lifetime of a parliament
• Level of revenue over next 5-10 years well below that expected in mid 2007
• Pace of deficit reduction may have to slow if world economy has new slowdown
• No immediate risk to UK credit rating, but longer it takes to get a credible plan to reduce UK deficit, greater risk to rating
• If QE were to continue indefinitely, would generate asset price and consumer price inflation