Weakness on Weakness
Not only do balance sheets drive the economy, but the economy drives balance sheets via asset values. A weak economy implies weak asset values and weak balance sheet, which means lending is further inhibited. Also, as a weak economy means higher risk premia, it brings tough times for borrowers. Spending suffers, as es profitability. Jobs are shred, investment plans get shelved and on it goes.
Something like these dynamics may lie hidden between the lines of the latest MPC minutes. Implicity in these dynamis is the risk of a deflationary tendency.
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