22 August 2013, 15:29  BoE's Weale: More QE might be needed

The asset purchase programme remains an available tool that the policy board might adopt if it feels that the economy needs further support, Bank of England Monetary Policy Committee member Martin Weale told the Daily Telegraph in an interview. Weale said he could "certainly envisage circumstances in which it would be sensible to undertake further asset purchases." The circumstances include further shocks from the euro area, or turbulence in emerging economies. Responding to suggestions that market interest rates have risen since the announcement of forward guidance, instead of a general assessment that it would fall, Weale said the issue is how people make their spending decisions, rather than market interest rate movements. At the August MPC meeting, Martin Weale called for tougher stance on above-2 percent inflation. He supported the adoption of forward guidance, but he saw a particularly compelling need to do more to manage the risk that it could lead to an increase in medium-term inflation expectations.

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