- Financial markets more volatile due to concerns about bank balance sheets
- Q2 GDP growth is encouraging but must be careful not to read too much into one number
- Can’t be certain that recovery will be sustained in Uk
Cable lower, presently at 1.5550. Good old Merve the Swerve strikes again!!!
- Risks on both upside and downside to inflation
- VAT rise will likely keep inflation above target for much of 2011
- MPC debate is about appropriate degree of stimulus not applying brakes
- I am arguing that we have room to use monetary policy in either direction
- It is very important for Britain to demonstrate there is a plan to control govt debt
- Current growth rates of money in economy is not a threat to inflation
- When it comes to selling assets, must come with pre-announced programme
