Speaking on the economy on LBC Radio
He adds:
- There has been modest loss of the momentum in economy
- Inflation has picked up very rapidly
- Pound helping exporters, firms investing in the UK
- recent rise in pound this relatively small
- Inflation is likely to accelerate further
- Pound adds 0.3 to inflation rate
- Even if interest rates do rise they won't rise to levels prior to the financial crisis
- We might need to take some of the stimulus away
- There is always going to be differences on the monitor policy committee
- monetary policy has foot on the accelerator
- Investment is growing in the UK but at a slower pace.
- Regulation has taken risk out of banking
- Consumer credit not biggest risk to economy
- Sees biggest risk outside of UK
- Buildup of credit in China as external risk
- Declines to comment when rates will go up but data over the next 3, 6, 12 months will be critical
- Sees modest rate rises if economy as forecast
- Couple of rate rises may come over years
- He takes account of FX moves in policy
The GBPUSD is trading at the highest level in the NY session (1.29747) but remains below the spike high from the London morning session (at 1.2983)
