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Fisher Says Deep Recession May Justify More QE, Dow Reports

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May 17 (Bloomberg) -- Bank of England markets director Paul Fisher said he’d consider voting to revive so-called quantitative easing were the U.K. to slide into a deep recession, Dow Jones Newswires reported him as saying.

“We’ve had a couple of quarters of negative growth, but we haven’t really had a fall back into a deep recession,” Fisher said in an interview published today. “If I saw that risk re-emerging, then personally I would want to think again about restarting.”

“For me, the key reason for restarting QE last October was the possibility that the U.K. could topple over into a deep recession again,” he said. “We seem to have hopefully headed that risk off at the pass. If there is not that serious possibility of deflation down the road, then I think there is less impetus behind doing more asset purchases.”

Were inflation to continue to “stick, year after year, above the target, then we will lose credibility,” Fisher said. “We are mindful of that and we don’t want to take risks with credibility.”

Officilas would also be “uncomfortable” were the pound to continue to appreciate,’’ he said.

To contact the reporter on this story: Jennifer Ryan in London at jryan13@bloomberg.net

To contact the editor responsible for this story: Andrew Atkinson at a.atkinson@bloomberg.net

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