Bank of England Deputy Governor Paul Tucker feels, that while surveys have pointed to some improvement in the economy, the outlook remains highly uncertain and may not clear until late autumn.
The official says the market is right to assume the BOE would tighten monetary policy when the inflation outlook warranted it, but stressed the need to maintain perspective now.
Tucker is concerned whether or not the financial system is capable of generating enough credit to foster recovery.
He prefers the central bank’s current approach of keeping interest rates close to zero and putting money into the economy over an approach of comitting to keeping rates low for a specific period of time.
Cable is drifting lower, presently at 1.6115 having posted a 1.6177 session high earlier.