Bank of England Governor Andrew Bailey was interviewed on TV (ITV)
- Says the BOE stands ready to help finance the Government's spending
Like other DM central banks the BoE buys government debt on the secondary market. If, on the other hand, the Bank buys direct from the government as Bailey seems to be alluding to that moves the ball game to debt monetisation. Many will argue this is as good as happening, and indeed RBNZ Governor Orr says he would have no issue with direct monetarisation of government debt. I reckon its a big step, but my view is not shared by all, some recon its no big deal. I do not agree.
