Markets have ramped up bets on March rate cuts, seeing it as 50/50. Were these bets underpriced before?
Interviewer
Andrew Bailey
In the minutes, I said there is a prospect of further cuts. Going into March, 50/50 is not a bad place to be as markets are asking the same question I am.
Why did you drop the word 'gradual' from your formal guidance?
Interviewer
Andrew Bailey
We've made a lot of progress. We are now getting towards what I might call the neutral level of interest rates that will sustain inflation at the target.
The global economy has been resilient to shocks. Is it because we see fewer shocks or are we more adaptable?
Interviewer
Andrew Bailey
The world economy has been more resilient to uncertainty over the last year than our concerns this time last year suggested.
Is domestic political uncertainty now more of a concern?
Interviewer
Andrew Bailey
I don't comment on politics. The important thing is that macroeconomic policy appears to be doing its job, leading to more stable prospects.
Given the latest Mandelson revelations, does this appear like insider trading and does it betray institutions?
Interviewer
Andrew Bailey
I'm shocked by what we've learned. It was a very difficult period with hugely difficult decisions made under pressure.
You welcomed Kevin Warsh's nomination as Fed Chair. Does he need to find credibility with the markets?
Interviewer
Andrew Bailey
I welcome his nomination. He's a very experienced central banker and I look forward to working with him.
We'll have two sets of data before the next decision. Will that be enough to make a decision?
Interviewer
Andrew Bailey
We'll see what transpires. The data is useful and important, but we will put all evidence together from all sources as we always do.