LONDON (MNI), Oct 19 – Bank of England Monetary Policy Committee
members are on a regional tour in North West England on Oct 18-20.

This tour is set to produce a string of comments to local media.

The following highlights their remarks so far.

——————– North West Regional Tour————————–

BOE Deputy Governor CHARLES BEAN, interview with BBC Radio
Manchester, on Oct 19:

“The threats at the moment are, actually, more that inflation will
be too low in the medium term rather than too high and that is why we
restarted our asset purchases.”

“As we go into next year that rate of inflation will come down
pretty sharply,” he said and “the big squeeze on household incomes that
we have seen this year shouldn’t be repeated next year and there is a
bit of light at the end of the tunnel for consumers.”

MPC member BEN BROADBENT, in an interview with BBC Radio Lancashire
on Oct 19:

“I think the prospects for inflation in the near term are pretty
clearly for a fall. That is not to say that overall the economy is going
to improve dramatically, much depends on what happens elsewhere in the
world.”

The extra QE “is designed to increase the amount of money
circulating in the economy and to raise some asset prices and thereby
raise spending and demand, and I am confident it will have some impact.”

“It is also encouraging that over the last two to three weeks
policymakers in Europe are showing signs of getting to grips with some
of the big problems there, which in many ways underlie, and are the deep
causal factors behind, the recent weakness we have had.”

MPC member ADAM POSEN, in an interview with the Lancashire Evening
Post, published on Oct 19:

“Things are moving that fast in a downward direction that we have
to be one step ahead in terms of policy.”

On quantitative easing: “It is maybe a slightly less accurate ammo
(ammunition) than interest rates but we definitely know it gets you
there.”

On the spike in inflation in September: “Right now, this one shot
spike in inflation we are seeing is very temporary, it is a peak that
coming down and it is going to come down pretty fast in the first half
of next year.”

BOE Governor MERYVN KING, speech to the Institute of Directors, St
George’s Hall, Liverpool, Oct 18:

“Four years into the crisis it is surely time to accept that the
underlying problem is one of solvency not liquidity – solvency of banks
and solvency of countries.”

“Of course, the provision of additional liquidity support to
countries or institutions in trouble can buy valuable time. But that
time will prove valuable only if it is used to tackle the underlying
problem.”

“Our objective must be to steer the UK economy slowly back to a
position of more normal interest rates and lower budget deficits. With a
lower level of sterling and a credible plan to reduce the fiscal deficit
over the medium term, we were on track. But the problems in the euro
area and the marked slowing in the world economy have lengthened the
period over which a return to normality is likely.”

“2011 has been the year of the reluctant recovery. Growth has
disappointed, both here and abroad. Business and consumer confidence
have fallen sharply, not only at home but also elsewhere in Europe and
the United States. And the level of world trade in goods has stagnated.”

“In contrast to headline inflation, domestically generated
inflation remains subdued – and on some measures barely above zero.”

“It is the outlook for inflation, rather than its current rate,
which explains the MPC’s decision to resume asset purchases.”

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[TOPICS: M$$BE$]