LONDON (MNI) – Bank of England Monetary Policy Committee member
David Miles says quantitative easing is “a powerful weapon” and there is
room to do more.

In a Sky TV interview Sunday Miles, who has championed QE,
dismissed the view that it has become ineffective and said more would be
done if the economy stays mired in recession.

“There is the scope for more quantitative easing … it remains a
powerful weapon,” Miles said.

“If it turns out that not enough has been done, that the economy’s
going to stay in a recessionary state and that’s going to drive
inflation down, there is more we can do. We have not run out of
ammunition,” Miles said.

The MPC voted for unchanged policy at its November meeting with the
minutes out Wednesday. Many analysts are expecting a unanimous vote, as
the transfer of gilt coupons to the Treasury from the BOE’s QE fund
amounted to monetary easing, and this is thought likely to have brought
the doves into line.

If any MPC member did, however, dissent and vote for more stimulus
Miles is seen as the most likely one and his comments show he is still a
proponent of QE.

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