A large build-up of capacity in iron ore, natural gas and coal is planned. Over the summer, there have been further announcements of projects that had been proposed being given the “go-ahead”, principally in the gas sector.
In broad terms, therefore, the main medium-term story the Bank has been pointing to for some time still seems to be in place: we are experiencing a terms of trade event of very large size, of the type that happens only once or twice in a century.