GBP dropping

  • It’s sensible to provide more stimulus if needed
  • Time to review remit for setting UK monetary policy
  • Current remit does not specify how MPC should balance short-run growth and inflation
  • 2013 to see ‘gentle recovery’
  • Inflation to remain above target for much of 2013
  • Pound drop was needed for UK rebalancing
  • UK recovery noticeably slower than other countries
  • MPC will continue to assess merits of rate cut

Here is the full story from Reuters.

Talking about a fresh mandate is serious but the story says ‘the changes King appears to have in mind are relatively small.’

King is batting around grandiose ideas but he steps down in June so it will be Carney that implements any reforms or bold new policies.