BoE's Posen Says Quantitative Easing Will Not Lead To Unacceptably High Inflation

Sponsored Links

Monday, Monetary Policy Committee member of the Bank of England, Adam Posen said the quantitative easing measures would not lead to unacceptably high inflation at any time horizon.

In his first speech as an external member of the MPC, Posen said, "There is no evidence from relevant periods of UK or other major economies' economic history that QE will result in high or sustained inflation." He added, "High inflation is not what we should be worrying about."

Further, Posen said, "There are even indications that the recession - now a severe but normal one - is coming to an end." The aggressive and unconventional measures adopted by the central bank played the critical role in ruling out the worst outcomes which might have come out of the financial panic of 2008-09.

The MPC will decide whether to extend the asset purchase scheme when it meets on November 5. The next quarterly Inflation Report of the central bank is due on November 11.

Monday, Monetary Policy Committee member of the Bank of England, Adam Posen said the quantitative easing measures would not lead to unacceptably high inflation at any time horizon. (Market News Provided by RTTNews)