It is the set of conditions that we hoped we were exiting from this year, and should, therefore, in mitigation spur us on to work harder to reduce our macroeconomic risk profile and take steps to encourage more rapid economic growth here at home. Today, I’d like to discuss the outlook for recovery and the role of monetary policy. This is necessarily uncertain.
It is easy to imagine shocks which could throw us off course, both from the global economy and domestically. Some important political shocks have recently occurred, and it will take time for their full economic meaning and impact to be felt – a point I will return to in the conclusion.