- Recovery is reasonably broad based
- Domestic factors have been driving UK economy
- Will take Eurozone weakness into account in thinking on interest rates, but EZ will not dictate policy of BOE
- Have to also take into account more modest global recovery
- Global demand producing benign inflation outlook
- Need to assess whether UK economy will slow slightly at end of 2014 (pretty much seeing that already)
- There is persistent disinflation in some G4 economies
- Says it’s right for the MPC to ignore UK election timing
Nothing much on the dove/hawk scale and Carney joins some Fed members in worrying about how Europe will affect our respective economies. GBP/USD up to 1.6100 from 1.6090. He’s also laid further groundwork for the slowdown in the UK to run into the year end.
