King: Bank of England ready for more QE

24 October 2012

More quantitative easing (QE) is a possibility if the Bank of England (BoE) believes the British economy needs a further boost.

That is according to Sir Mervyn King, governor of the central institution, who has insisted policymakers are ready to inject more cash into the country's financial system if recent indicators of a tentative recovery recede.

During a speech delivered at the South Wales Chamber of Commerce in Cardiff last night (23 October), Sir Mervyn dismissed the possibility of using alternative forms of stimulus - such as handing funds directly to the government - as such measures are "dangerous".

He explained it is clear that the process of rebalancing the UK economy is occurring at a "slow and uncertain pace", meaning it is tough to establish whether some of the recent positive signs will persist.

With this in mind, the BoE chief said while the Monetary Policy Committee would have to "think long and hard" about boosting QE, it is ready to do so if necessary.

By Asim Shah

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