U.K. Business Secretary Vince Cable said so-called quantitative easing is a “rather narrow mechanism” and central banks including the Bank of England should consider expanding the range of tools they use to boost the economy.
“The BOE has an absolutely key role in the economic recovery,” Cable said in an interview with Bloomberg Television’s Manus Cranny today in Swindon, England. “Central banks have a key role; they’re going to have to adapt their approach. Quantitative easing has indeed become a rather narrow mechanism. We maybe need to look beyond that.”
He added that the Bank of England “has been confident that we’ve been managing our public finances correctly, and on the back of that, they’ve been willing to maintain remarkable and unorthodox monetary policy. That’s partly what has kept the economy afloat. It could have been much, much, much worse.”