First part of report here
- QE decisions are taken on a month to month basis
- Not interested in providing forward guidance on QE
- Will only buy assets that are backed by government
- Would like to get back to “normal” levels of interest rates sooner rather than later
- If UK economy recovers well may be able to raise rates sooner than expected. We’re still in the grips of problems being solved in other countries
- North sea oil production and construction falls ,stripped from GDP would have shown economy at 1.7% growth last year. It’s the unwinding of the problems in these sectors that will be adding to economic growth this year.
This is an area we should now focus on with further UK data. If they start to improve then we could see a sustained recovery. Otherwise, it’s these sectors that will keep the lid on a recovery against other data releases.
- Hears enormous scepticism about FTT from quarters that are publicly behind it.
And thus the curtain comes down on one part of Sir Mervyn Kings 20 year history with the BOE
