Rebalancing focuses on three main areas

  • Deleveraging debt and risk, which there has been progress, Firms have de-risked
  • Fiscal change: which is in train (skated over that very quickly)
  • External factors such as weak global economy, EU economy still going sideways

BOE’s Bean

  • Achieving rebalancing through greater net trade and investment is hard given global back drop
  • Financial crisis has hurt Britain’s comparative advantage financial and business services
  • Pick up in domestic demand needed before business investment improves

Carney

  • MPC will keep loose mon pol at least until threshold
  • Issue of further stimulus not a question for today