BOE Could Increase QE if British Economy Slows Down Further

BOE's deputy governor Dave Ramsden stated that the central bank could ramp up its QE efforts in case the economy begins to slow down or

BOE Could Increase QE if British Economy Slows Down Further

In a recent interview, BOE’s deputy governor Dave Ramsden stated that the central bank could ramp up its QE efforts in case the economy begins to slow down or suffer again. Previously, Ramsden had let on that the BOE had more measures to prop up the economy.

Currently, the BOE has committed to quantitative easing worth 745 billion pounds. While speaking with The Times newspaper, Ramsden commented, “I’m confident we’ve still got significant headroom to do more QE if we saw a much weaker recovery. A key outcome is what happens to the labour market. Some companies are going to go under. Some jobs are going to be lost.”

At its most recent meeting last week, the BOE announced that it had no plans of taking interest rates into negative territory anytime soon, even as the British economy is expected to take longer than previously anticipated to recover in the aftermath of the coronavirus pandemic. Back in March, the central bank had brought down interest rates to 0.1% and increased the scope of its bond purchase program to nearly $1 trillion.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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