Current Monetary Policy Issues - speech by Rachel Lomax

Speaking to the Hull & Humber Chamber of Commerce tonight, Rachel Lomax, Deputy Governor for Monetary Policy focuses on the turmoil in financial markets and the renewed surge in energy prices, and discusses the difficult policy decisions now facing the MPC.
Published on 22 November 2007

On financial market developments, she argues that the problem is one of uncertainty: about the eventual size of losses from defaults on US sub prime mortgages, and about where these loans have ended up. The impact of the turmoil on UK monetary policy will depend on the answer to three questions: how far the liquidity squeeze will turn into a credit crunch; how well placed households and firms are to weather such an event; and whether there will be a significant impact on credit conditions in the longer term?

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