* Domestic spending decline must accompany export boost * Exporters must create 500,000 jobs to rebalance * Monetary policy still a potent weapon * BOE policy must balance risk to inflation * Indicators of inflation subdued * G7 willingness to work together has ebbed * Pound drop supports rebalancing of economy * Countries with surplus and deficits are in conflict http://forex.fxdd.com/91811/economic-statistics/boe-king-on-the-newswires-2 If Mr. King is a fan of lower GBP, I will certainly consider selling a bit of this currency...or a bit more...
Cable run up huge (against USD anyway) since UK announced the 500,000 government workers and other austerity program less than a day ago. Only bigger spending & QE will cause the pound to drop.