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
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.
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