Market impact of stimulus exit "uncertain at best" - UK debt chief

LONDON Wed Jun 26, 2013 10:25am BST

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LONDON (Reuters) - Violent market reaction to recent hints that the U.S. Federal Reserve might soon reduce bond buying showed the uncertain effect of exiting monetary stimulus, however carefully, Britain's chief debt issuer said.

"The reaction in the U.S. does show you that a withdrawal of monetary policy stimulus is arguably not straightforward and it will have an effect on the market, and I think that that effect at best can only be described as uncertain," Debt Management Office chief executive Robert Stheeman said at a conference on Wednesday.

He also said that Britain's government borrowing requirement is still very high, despite years of public spending cuts and tax rises.

(Reporting by Olesya Dmitracova, editing by Adam Jourdan)


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