Bank of England's Perspective of the Global Economy

Excerpts from Minutes of the Monetary Policy Committee Meeting held on 7 and 8 May 2015 released on 20 May 2015

"while there had appeared to be continued upward momentum in euro-area activity, US and Chinese GDP data had been disappointing. Furthermore, several of the global output surveys had weakened in April. A key question was whether this weakness was likely to be temporary or more persistent"

"The recent data flow in Germany had also been a little weaker, suggesting some easing in momentum into the spring."

" oil prices remained around 40% lower than their peak in mid-2014. OPEC production in March had recorded its largest monthly increase since September 2012 and the level of OECD oil inventories remained high, suggesting that the short-term risks to oil prices might remain to the downside."

" the ECB’s asset purchase programme was likely to continue to boost growth. "

'There was also a good chance that the sharp drop in US GDP growth in 2015 Q1 would be temporary and that at least some of the lost output would be recovered in Q2. ...It was also possible that US GDP growth would be revised down in Q1 and that some of the weakness in labour productivity growth would persist."

"Chinese growth had softened and, although the authorities had taken action in response, it was likely that more stimulus would be needed to bring growth back to their target of around 7%. 

"And there remained downside risks to the euro area given the possibility of a disorderly outcome of the Greek debt negotiations"

Source : Bank Of England 

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