Barker Says More BOE Stimulus May Be ‘Misplaced’

The Bank of England risks stoking inflation with little benefit to economic growth if it expands its so-called quantitative easing program of stimulus, former policy maker Kate Barker said.

“If rising inflation expectations have followed the use of QE, there is a risk that relying on monetary policy to ride to the rescue of faltering growth might be misplaced,” Barker said yesterday at an event held by Queen Mary College in London. More stimulus could “have more of an impact on inflation than on growth if it feeds through into higher inflation expectations.”