Bloomberg News

Posen Says Bank of England Stimulus Has Helped U.K.’s Economy

February 02, 2012

Feb. 2 (Bloomberg) -- Bank of England policy maker Adam Posen said the central bank’s bond-purchase program isn’t inflationary and has helped the U.K. economy.

“We are affecting demand,” Posen said on BBC Radio today. “Things would have been much worse if we hadn’t done the quantitative easing that I advocated.”

He said that quantitative easing “isn’t about” inflation and that consumer-price growth will continue to ease this year.

Posen also said that credit is due to the European Central Bank for its three-year loans to banks.

The loans “have worked out pretty well,” he said. “The interbank markets are definitely improved. They’re not great, but they are improved.”

To contact the reporter on this story: Fergal O’Brien in London at fobrien@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net


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