The Bank of England needs to pump at least another 50 billion pounds ($77.8 billion) into Britain’s “stalled” economy, says David Miles of its interest rate-setting committee, warning that only a “substantial” third round of emergency bond-buying will kick-start recovery.
His comments, in an interview with the Financial Times, came amid growing expectations in financial markets that the BoE could embark on more “quantitative easing” as soon as next month, printing money to buy gilts in an attempt to drive down borrowing costs for households and businesses
Mr Miles voted for additional QE at this month’s meeting of the Bank’s nine-strong Monetary Policy Committee – along with three other members including Sir Mervyn King the governor.
He said: “Do we need a more expansionary monetary policy? ‘Yes’. Should it be a substantial change in asset purchases? ‘Yes’. Is 50 billion pounds a substantial number? ‘Yes it is’. Could one know in advance what is exactly the right amount to do? ‘Absolutely not’.”Page 1 of 3 | Next Page