The Governor picks out a number of encouraging signs, both domestic and international, for UK economic prospects - including the monetary policy framework now in place which, in his view, provides the best chance in 30 years of achieving price stability in the medium term. Underlining the need above all else to avoid another cycle of boom and bust, he notes that the testing time will be the moment - which may still be some way off - when interest rates need to be raised to moderate the pace of expansion. He expresses the hope that, when that point does come, it will be seen not as evidence of weakness, but as a considered response to the underlying strength of the economy.
The prospects for monetary stability