Economics
BOE Vows to Improve its Public Explanation for $1.2 Trillion QE
- Central bank faulted for ‘important knowlege gaps’ on policy
- Officials accept findings of report for bank’s governing court
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The Bank of England will improve the way it communicates about how it stimulates the economy through quantitative easing, a response to an internal report that found the method is poorly understood.
A report from the BOE’s Independent Evaluation Office published Wednesday found the central bank’s 900 billion-pound ($1.2 trillion) program has been delivered “effectively” but there were “important knowledge gaps” in its technical understanding of the tool. It also noted public grasp of the the policy was low, and there were particular concerns over its potential side effects.