Further comments from Shafik
If we have data that signals that stimulus is needed, we will act
Wage growth is key for setting policy and the most important domestic driver for inflation
Thinks we need to look through some of the effect of sterling
Sterling is playing a very important role in the path of inflation
Wage growth has still been quite muted
Would rather act pre-emptively than do too little too late
Part of the reason consumption is holding up is due to the rate cut
Forward looking indicators for investment still look quite worrying
- Too early to say if UK will provide enough fiscal stimulus and the Treasury are still working on a fiscal response
- UK recovery is more likely to be U shaped than V shaped
- BOE is watching Deutsche Bank developments closely
The first comment that Mike posted grabbed all the headlines and price moves but the rest are more conservative with the usual ifs, buts and maybes.
