Tiff and I are pleased to be here with you today to discuss the October Monetary Policy Report, which the Bank published this morning.   The global economy has slowed markedly as several downside risks to the projection outlined in the Bank’s July MPR have been realized. Volatility has increased and there has been a generalized retrenchment from risk-taking across markets.
The combination of ongoing deleveraging by banks and households, increased fiscal austerity and declining confidence is expected to restrain growth across the advanced economies.   The Bank now expects that the euro area – where these dynamics are most acute – will experience a brief recession.