RECAP...

- BoE's King said the BoE is ready to provide more stimulus if needed, it is sensible to review BoE monetary policy regime and that it may be appropriate to review the UK's inflation targeting. King added that the MPC will continue to assess the merits of a rate cut, and Q4 GDP considerably weaker than Q3 GDP.
- He also commented that it would be irresponsible to lose a long run 2% inflation target. (Newswires)
- His successor Carney who is due to take over on July 1, discussed the virtues of a nominal GDP target as a policy tool, having raised the topic of potential limits of inflation targeting.
- GBP/USD is also trading heavy this morning on the back of the comments.