View more on these topics

George Osborne urges BoE to further loosen monetary policy

George Osborne 480

Chancellor George Osborne has called for the Bank of England to loosen monetary policy to boost the economic recovery.

Osborne made the call yesterday, at the launch of the Organisation for Economic Co-operation and Development’s report on the UK economy, in a highly unusual move a day before the BoE’s monetary policy committee announces its monthly decision on base rate and whether to extend its quantitative easing programme.

According to reports, Osborne said decisive moves from the Government on the deficit “means that… monetary policy can and should continue to support the economy”.

The MPC has already left base rate on hold since March 2009 and has injected £375bn into the economy to date through its QE programme.

The OECD’s report on the UK economy supports Osborne’s call.

It says: “The recovery from the recession is projected to continue to be slow and uneven. Although the scope for macroeconomic policy is becoming more circumscribed, sustained monetary stimulus through expanded quantitative easing, liquidity provision by the Bank of England and government-backed funding schemes need to continue to support the economy.”

This morning incoming BoE governor Mark Carney will face MPs sitting on the Treasury select committee in which it is likely that he will give an insight into his approach to monetary policy.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com