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BoE 'may have to consider stimulus'

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BoE 'may have to consider stimulus'
George Buckley - Chief UK Economist, Deutsche Bank AG

Policymakers at the Bank of England (BoE) will seriously consider implementing further monetary stimulus in the near future in order to protect the ailing British economy.

That is according to George Buckley, an economist at Deutsche Bank, who believes the combination of ongoing issues in the eurozone and government spending cuts are stifling the country's financial recovery.

With this in mind, he told Bloomberg that BoE officials will have to keep the door open for more quantitative easing (QE) in the coming months.

Yesterday (10 May), the Monetary Policy Committee opted to maintain the institution's asset purchasing budget at £325 million ($524 million) for another month, while also keeping the base interest rate at 0.5 per cent.

However, Mr Buckley noted this trend could change sooner rather than later, as the BoE has little choice but the "revise down their growth projections".

"They have a dilemma of high inflation and very weak growth, but you definitely can't rule more QE out," he added.

By Asim Shah

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