BoE's Tucker on financial markets dialogue

In a speech to the National Association of Pension Funds given on 19 March Paul Tucker of the Bank of England said with interest rates at 4%, monetary policy is still "stimulating the economy". He comments, "If, as projected, output continues to grow above trend then...I for one would expect us [the MPC] to continue gradually to reduce the degree of stimulus to demand.

On the monetary policy side, he says information from financial markets can be used "as a diagnostic of expectations of economic

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