IMF on the wires. Feels aggressive action by UK successful in containing crisis, averting systemic failure. The body feels though that the UK financial system is still under stress and that the crisis has caused a very big fiscal deficit. They can say that again.
The IMF conceeds that there are tentative signs of UK confidence improving, and the decline in output moderating. However output is still seen declining in the near-term, and any recovery is expected to be subdued.
The speed and strength of UK recovery is highly uncertain, and it is susceptible to potential shocks given high borrowing and financial sector fragility. Continued strong commitment to medium term fiscal consolidation is seen as crucial.
The IMF feels the BOE should further diversify asset purchases.
Well it ain’t great, but then it was never going to be. Infact, if anything, it’s less brutal than had been feared.
Cable has caught a bit of a bid, presently up at 1.5515.
