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Q&A cont. Q: Fed and ECB have eased/opened......>

BOE
BOE: Q&A cont.
Q: Fed and ECB have eased/opened the door, was BoE tempted to also ease?
- A: UK very different: growth in labour, wages, participation rate all very
good, core inflation just below target. Unlike in Eurozone. Relative to US, they
have already tightened so they are able to reverse some of that tightening - UK
hasn't tightened so much.
- There will be volatility in asset prices. Saw example of this around
referendum. There were heavy volumes, big moves but market functioned well.
Markets adjust to shocks, and part of that adjustment is through the exchange
rate.

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