BOE’s King: It is very likely there is still a margin of spare capacity in economy

• Possible that growth will not be strong enough to eliminate spare capacity for somewhile
• If high inflation feeds into inflation expectations then outlook for CPI could be much higher
• MPC stands ready to move policy in either direction as balance of risks changes

Merve even-handed as usual. EUR/GBP sits at .8442, little changed from early .8452.