• Cannot eliminate deficit in one year, programme has to continue through next parliament
• Debate on timing of deficit reduction is “overblown”
• Very difficult to make changes to public spending immediately
• Inevitable will take time for changes in public spending to be implemented
• May be necessary to expand QE, will have to see how things go. Will look at situation month by month
• Biggest areas of concern are world economy, especially euro zone
• Haven’t seen much evidence of pick up in UK net trade despite sterling fall