The economic outlook - speech by Charles Bean

Charlie Bean begins by providing the context for the MPC’s 6 October decision to extend QE. He notes the slowing of growth in the second half of 2011, and emphasises that it is a global phenomenon. He attributes it to two factors: the tension in financial and bank funding markets, heightened by the twin forces of the euro area banking and sovereign debt crises; and the rise in energy and other commodity prices during late 2010 and the first half of 2011.

Press release