Cable garners lift, presently back just above 1.5800.
- Longer rates stay at record low, greater risk that rates must rise sharply in the future
- Keeping emergency settings for too long may erode confidence in inflation target
- Longer inflation remains above target, bigger the risk inflation expectatons rise
- Risk that strength of recovery in private secor demand may be underestimated
- Budget measures may cause slowdown early next year but double dip “remote possibility”
Standard fare from Mr Sentance.
