- Sterling fall will be a concern if it continues
- Sterling will be a concern if it threatens CPI target
- Much less obvious that CPI will go negative in 2009
- Will use bank rate to get CPI back to target in medium-term
- Negative RPI in 2009 will be result of rate falls
- Certainly prepared to cut rates again if needed
- BoE fan charts exaggerate fall in GDP, inflation
- Inflation prospects decisively to downside