Q: Where do you see growth tailwinds coming.....>

BOE: Q: Where do you see growth tailwinds coming from?

- A: If you have relatively modest supply growth (the BoE's forecast), if we get

that recovery the economy hits 0.75% excess demand, inflation above target,

"world moves on" and prospect of tightening further out exists.

- Q: When [Carney] took over the bank, if you'd been told normalising rates

would be so slow, would you have been surprised?

- A: Yes. If you look back at Bank of Canada speeches, his view then was that

equilibrium rates would not be as low as they turned out to be. UK equilibrium

rate is lower than global equilibrium rate given UK domestic uncertainty and

sustained fiscal consolidation. This should ease given fiscal spending round and

whether uncertainty recedes as per evidence in surveys. If this uncertainty

reduction is sustained, this could push equilibrium rates on the margin.

Revealed outturns on inflation in the UK and overseas validate view that

equilibrium rates have fallen substantially.