It’s the new boy.
- Do not believe policy is either too tight or too loose
- Economy recovering, happy with policy setting as it is
- Budget has not had major impact as far as I can tell
- No good case for any change in inflation target
- High level of unemployment suggests considerable spare capacity in labour market (er, yes. and there’s going to be even greater spare capacity going forward)
- OBR estimate that output gap is 4% of GDP is “a plausible number”
- Real risk employment will pick up more slowly than private sector output
- Need to have plan in place should there be sharp worsening of credit situation
- Not expecting sharp worsening but could happen again
- Credit is going to be more expensive than before as banks need to be better capitalised
- Sees reasons why unemployment could rise faster than OBR forecasts (aha, I’m liking this guy already)
- Monetaru policy should be first line of defence if economy slows
- Inflation expectations have not been de-anchored
- Number of factors have caused UK CPI to be persistently above target
- Response of prices to sterling weakness has been larger than expected
- Am very comfortable with profile in August inflation report
- Not surprised that US growth weaker than Fed forecasts
- Most outside bodies have factored in weaker US growth than Fed forecasts
Mr Weale may not call himself a dove, but he’s certainly dovish from what I can see. And that’s a good thang!!! Didn’t want another one like Sentance.