October 27, 2010 / 7:57 AM / 9 years ago

Recovery is not inflationary - Bank's Posen

Members of the public walk past the Bank of England in central London June 3, 2008. REUTERS/Alessia Pierdomenico

LONDON (Reuters) - Britain’s fledgling economic recovery is not fuelling a surge in inflation, Bank of England policymaker Adam Posen said in a newspaper interview published on Wednesday.

“If there was going to be a recovery that either was inflationary or otherwise meaningfully different from that established pattern, it should have been evident by now,” Posen told the Irish News.

“We’ve fended off a financial crisis, currency and interest rates are stable and there is price stability because, while we overshot a bit on our inflation target, let’s be realistic, 3.5 percent is a far cry from double-digit inflation.”

Posen, who was the sole voice on the nine-strong Monetary Policy Committee calling for a 50 billion pound expansion of the Bank’s quantitative easing scheme this month, also said the financial sector was not “fixed yet.”

Reporting by Matt Falloon and David Milliken

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