One of the positive things highlighted by recent events has been that it has proved the appropriateness of the currency policy pursued by the UK administration over the past 11 years. When currency stability against the Eurozone was needed, then the UK was able to achieve this while still maintaining a flexible monetary policy. Equally, when bad news hit last year the GBP was able to weaken to levels that would provide a longer term competitive boost to the UK economy. Not only has the currency been able to respond but so, also, has the local fixed income market. UK 10-year yields have headed fairly steadily lower from early July of last year onwards to factor in the expected slowdown in the UK economy.