RBS Chairman Davies Expects BOE to Hold Rates Steady

The transcript discusses the division within a committee regarding interest rate changes, highlighting recent economic data, particularly retail sales. It examines the sustainability of negative real rates in the UK, emphasizing the challenges faced during the recovery phase from a crisis. The conversation shifts to capital flows and the UK's economic concerns, focusing on the deficit and the need for economic rebalancing, with a slight improvement in export performance following a decline in sterling.

What are the implications of having negative real rates in the UK economy?

How does the speaker view the normalization of interest rates?

What concerns does the speaker express regarding the UK's deficit?

What factors does the speaker believe are necessary for rebalancing the economy?

In what context does the speaker mention the decline in sterling?