BOE’s Barker: Recovery on track but bumpy

BOE MPC member Kate Barker says the recovery is on track but that path is set to be bumpy. Severe risks to the downside have diminished she said.

The MPC is having a tough time reconciling the recent uptick inflation with the still-big output gap, she said.

Weakness in the world economy is a worry, especially in the EU, she noted.

Cable is a tad firmer in the wake of the comments which suggest the worst is past for the UK economy. It trades now at 1.5070 from 1.5032 lows.