Mr Carney has work to do despite signs of recovery

Mervyn King left his last Monetary Policy Committee meeting with his wish to restart the quantitative easing programme unfulfilled and the Committee still seemingly stuck in a state of limbo ahead of Mark Carney’s arrival. Despite the recent signs of economic recovery, we expect Mr Carney to usher in a new wave of monetary stimulus. That said, the fact that he will be battling against a relatively hawkish contingent on the Committee might limit how radical he can be.