LONDON (Reuters) - The Bank of England’s scope to ease monetary policy is limited given high inflation, BoE policymaker Ben Broadbent said in an interview published on Thursday.
“If one hears politicians saying life would be better if we had more monetary easing, well the truth is you always hear that from government. We are in a position where we can judge it for ourselves, but we are limited. Inflation is higher than we’d expect,” he told The Northern Echo newspaper.
“I think it’s because there has been an independent hit to supply. But it’s not possible for monetary policy to solve that on its own,” he added.
“I‘m not saying it’s ineffective. Without some of the measures that have been put in place we’d have had another Great Depression rather than a banking crisis. But it has its limits.”
Broadbent already voted against the current round of quantitative easing purchases, when it was launched in July.
Reporting by Olesya Dmitracova