Carney says no case for QE in improved economy - paper
LONDON (Reuters) - Bank of England Governor Mark Carney sees no need for more bond-buying by the central bank given the signs of recovery in the British economy, a newspaper quoted him as saying.
Carney told the Yorkshire Post that the BoE would consider the case for more quantitative easing should the economy falter.
"But my personal view is, given the recovery has strengthened and broadened, I don't see a case for quantitative easing and I have not supported it," he said.
The BoE's nine policymakers all voted against more bond-buying at their last three monthly meetings as the Bank launched its new plan linking its record low interest rates to Britain's unemployment rate and as the economy showed signs of picking up.
But some economists have suggested the BoE might yet resort to more bond-buying to push down interest rates in financial markets which have risen since Carney launched forward guidance on policy in early August.
In the interview with the Yorkshire Post, Carney reiterated his view that Britain's housing market was seeing a turnaround, but levels of activity remained only around two-thirds of their longer-term averages for the sector.
"The core of the recovery is not housing, but that said, the prospects and level of activity in housing have turned from low bases and we as the Bank of England need to be vigilant about how those dynamics move in the future," he said.
On Thursday, Britain's Treasury said it had asked the BoE to play a bigger role in assessing the impact of its "Help to Buy" housing programme which critics have said might cause a new property boom.
- Tweet this
- Share this
- Digg this
- Vice-principal of South Korea school in ferry disaster commits suicide |
- Putin admits Russian forces were deployed to Crimea
- UPDATE 7-Tennis-Monte Carlo Masters men's singles round 3 results
- Ukraine separatists reject diplomatic deal to disarm |
- All 338 Korean students, teachers rescued from sinking ferry - school official