LONDON (MNI) – Bank of England Monetary Policy Committee member
Adam Posen said current MPC policy is not doing enough to stimulate the
economy and more should be done.
Posen, who has voted for an additional stg50 billion in
quantitative easing, set out his arguments for the MPC to provide
greater stimulus in evidence to the Treasury Select Committee. He said
the Inflation Report (IR) projections were overly optimistic.
“I expect consumption to be even weaker than is already in the IR,
I expect wage growth to be weaker than is already in the committee
forecast, and I do not expect any meaningful drift upwards in inflation
expectations to translate into exchange rate movements or interest rate
movements,” Posen said.
“It seems to me the policy is insufficiently stimulative and we
should be doing more,” Posen said.
–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MT$$$$]
