LONDON (MNI) – Bank of England Chief Economist Spencer Dale has
dismissed the idea that if quantitative easing is having less impact the
BOE should just do more of it.
In an interview with the Times Dale says the argument makes no
sense, and reprises the view set out in a recent speech that the central
bank has to weigh up the costs as well as benefits of QE. He also argues
for the BOE to be more transparent than ever as it assumes extra powers.
“One of the statements I dislike the most of all is when sometimes
people say ‘Well, if it’s having less effect then you just double or
triple the dosage’,” Dale says.
“To my mind that doesn’t seem to make any sense once you take
account of the fact that there are potential costs and risks associated
with an instrument,” he adds.
The Times also says Dale remains concerned inflation, despite the
headline rate dropping to 2.2%, will stay above its 2% target for at
least another year.
Dale voted against the QE extension in July and has been a distinct
voice highlighting the case against what he terms the Pavlovian reaction
of increasing stimulus whenever growth disappoints
-London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$$BE$]
