BOE’s KING: Impossible to say how long adjustments will take to Eurozone imbalances
- Special liquidity scheme almost completely repaid by banks, have plans for variety of contingencies. Banks will be able to obtain funding again if needed.
- Government’s responsibility to respond to youth job situation
- Eurozone needs a long-term credible plan that raises competitiveness
- Not planning to slow inflation to below target
- BOE not relaxed on inflation up at 5%, big challenge for the bank to get inflation back on target, but see big improvement in early 2012
- No idea how eurozone crisis will be solved, Eurozone has resources to make needed transfers, but problems lie with with governments not the ECB
- Need to tighten policy “some way off”
- Revised growth forecasts largely due to EU crisis,
- Not considering any other uncoventional policy options