More Quantitative Easing could be Required
One of the central bank's top policy makers has said that a smooth economy recovery is not yet assured and the Bank of England has not ruled out the possibility of fresh stimulus measures. Martin Weale told the Telegraph newspaper on Wednesday that he can see future circumstances in which it would not be wrong to undertake further asset purchases.
The bank has recently announced to give forward guidance on interest rates. Weale voted for higher rates in 2011. Besides, he was the only in the nine-strong Monetary Policy Committee who opposed the guidance plan proposed earlier this month by Bank Chief mark Carney.
According to Weale, labels such as hawk and dove were not helping. Earlier this summer, he had showed agreement with his colleagues that the market went ahead of themselves in pricing in UK rate increases.
Weale said that asset purchase is a tool that committee can use if it thinks the economy can be bettered by providing further support. He added, "I would hope the recovery is well entrenched, but anyone who thinks the future will unfold smoothly is not taking account of everything that's happened in the past five years".
Weale is the first member of Monetary Policy Committee to speak publicly after Carney announced no interest rate hike by the bank.
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