MPC’s Weale: More scope for QE
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Monetary Policy Committee member Martin Weale believes there is “quite a lot of scope for more quantitative easing”.
Last week, the Bank of England announced a further £75bn injection of quantitative easing into the economy.
Weale said: “Before the purchases that we announced last week, the amount of government debt in the system was actually higher than it had been before the earlier bout, so there is quite a lot more that could be done.”
Weale, who has been calling for a rate rise, denied that quantitative easing simply led to inflation, without stimulating the economy, but admitted there was “uncertainty about its impact”.
Last week, Bank of England governor Mervyn King acknowledged that inflation could reach 5 per cent in the near future.
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