I’d say that’s jolly sound logic. Should have done it earlier, but hey ho.
- Deterioration in UK economic outlook largely due to overseas factors (ummmm, not sure I agree there me old fruit)
- “Very good chance” Sept CPI will be above 5%, but “substantial fall-off” seen in early 2012
- Ultimate test for QE is hitting 2% CPI target in medium-term, high inflation hurting households
- MPC will assess right scale of QE purchases on a monthly basis
- 4-month plan for 75 bln of gilt purchases does not mean policy cannot change in this period
- UK not in liquidity trap, comparisons with Japan and depression do not reflect real economy well
