London (MNI) – Bank of England Executive Director Markets Paul
Fisher doesn’t rule out further quantitative easing if deflation became
a medium-term prospect.
In answers to questions at a conference here, Fisher said that
deflation and further QE was not the MPC’s central scenario.
“It always starts with our medium-term estimate of inflation and if
we saw that sinking down towards deflation territory. What would cause
that to happen would be a sudden tip off in growth now – so that is a
risk …. I really hope it doesn’t come to that and it’s not our central
scenario.”
–London newsroom: 4420 7862 7492; email: ukeditorial@marketnews.com
[TOPICS: M$$BE$,MT$$$$]
