MPC hawk says Bank may intervene to boost economy
The Bank of England is ready to return to its programme of quantitative easing if the economic outlook worsens, a leading member of its Monetary Policy Committee signalled yesterday.
Martin Weale, one of the MPC's external members, said: "There isundoubtedly scope for further asset purchases to trigger further reductions in yields on government debt should the need arise."
Mr Weale's intervention is significant because, until recently, he was one of the MPC members who backed an increase in interest rates to head off inflation, rather than a loosening of monetary policy, which is what an extension of QE would represent. However, Mr Weale said he did not believe the time had yet come for the Bank to act.
"I do not think our August forecast or the more recent market movements since then as yet make a case for such a policy," he said.
Nevertheless, Mr Weale's shift in position will be taken as another sign that the MPC is moving closer to adding to the £200bn the Bank has already spent on QE, following the deterioration of the UK economy over the past few months.
Mr Weale said he was most concerned about the outlook for British exporters, who are struggling to cope with the slowing global recovery and especially acute difficulties in theeurozone, their biggest market.
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
- 1 Scottish independence results live: Reunited kingdom - Scotland gives a clear 'No' in historic referendum
- 2 Scottish referendum results: David Cameron set to unveil major devolution of powers to England
- 3 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 4 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence results live: Reunited kingdom - Scotland gives a clear 'No' in historic referendum
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: YouGov final prediction puts No campaign 8 points ahead - but Yes team remains optimistic
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...
To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...
Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...