• Would likely not have backed government in more QE last month, even without stimulus Gilt coupon transfer
• Coupon transfer not an economic problem, but large money flows between BOE and Government does raise understandable concerns
• Monetary policy can only play a limited role in easing painful economic adjustments, size needed meant some had to come from inflation as well as wage restraints
• Spare capacity in the UK is not a sufficient gauge of inflationary pressures