Economics
BOE Has Scope For More QE to Support Economy, Ramsden Says
- Bonds rise after remarks suggesting further stimulus possible
- Pace of QE is likely to slow this year unless markets falter
Dave Ramsden
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
The Bank of England has more scope to increase its bond-buying program to stimulate the economy, a key policy maker said, a sign that officials may be reluctant to push borrowing costs below zero.
Deputy Governor Dave Ramsden said the central bank could review some of its own constraints on purchasing U.K. government bonds in financial markets to boost the program known as quantitative easing. While the BOE doesn’t rule out negative interest rates, he said QE is a “tried and tested tool.”
The remarks also suggest the central bank isn’t ruling out adding more stimulus despite its own expectations of a strong rebound driven by the U.K.’s aggressive vaccination campaign against the coronavirus.