Happy Dayz
- Further declines in UK CPI checked by sectors where competition weak like universities, domestic gas and power
- UK FACES “RATHER UNAPPEALING COMBINATION” of subdued recovery and above-target inflation (where I come from we call it “stagflation”)
- Global imbalances from before financial crisis remain, are a recipe for weak global growth
- If unfavourable global environment persists, HARD FOR UK TO GROW FAST WITHOUT FURTHER FALL IN REAL EXCHANGE RATE
- MPC has not lost faith in asset purchasess as a piolicy instrument or decided there will be no more purchases (personally, my guess is there will be more)
- Treasury decision to take back BOE gilt interest does not mean MPC no longer in control of monetary policy
- MPC ready to do whatever it can to keep UK on right path
- Outlook for inflation explains exactly why BOE paused QE
- Euro zone prospects look “pretty bleak”
- Looking over decades, no reason to suppose long-run performance of UK will be weaker
- But whole world has to change pattern of growth, will prove very difficult
- Latest unemployment data not weak, labour market still pretty strong
