Thursday, February 21, 2013
Massive, NO MASSIVE QE planned
The Bank of England has a case for restarting its asset purchase programme, and may need to increase it by up to Â£175bn if the economy is running substantially below capacity, a senior policymaker has said. David Miles, in a speech on Thursday, gave a detailed model of how policy should respond to the amount of slack in the economy - something the central bank has generally avoided before, and which moves in the direction of policy guidance favoured by incoming central bank governor Mark Carney. Miles is an external member of the bank's Monetary Policy Committee, and until this month he was alone in voting for an extra Â£25bn of asset purchases.