UK residents will likely save more as a fraction of GDP than previously, says BOE Governor King. Since it is a zero-sum game, greater savings will come at the expense of consumption, which could prolong any economic downturn.
Also crossing the wires is news that the UK will set up a body to oversee its bank investments. It will be called the UKFI or UK Financial Investments Ltd.
Cable is consolidating losses, trading now at 1.5850 after dropping sharply during New York trade.
