Economics

BOE Has Considerable Headroom for More Bond Buying, Ramsden Says

Dave Ramsden, deputy governor for markets and banking at the Bank of England (BOE), pauses at the bank's quarterly inflation report news conference in the City of London, U.K., on Thursday, Aug. 1, 2019. The BOE said it's less confident than usual about the outlook for the economy because of Brexit and offered little new insight into the impact of no deal.Photographer: Simon Dawson/Bloomberg

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By Lucy Meakin and David Goodman

October 21, 2020 at 8:34 AM EDT

Updated on

October 21, 2020 at 9:05 AM EDT

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Bank of England policy makers still have plenty of headroom to expand asset purchases if need, according to Deputy Governor Dave Ramsden.

Quantitative easing is “tried and tested” and it’s the Monetary Policy Committee’s marginal policy tool at present, he told the Society of Professional Economists in a webinar Wednesday. If the BOE’s self-imposed rules to avoid market distortion were to become an issue in the future, they could be reevaluated, he said.