The Bank of England still has the 'firepower' to boost the economy through another round of quantitative easing (QE), policymaker David Miles had said.
The Telegraph reports Miles said: “We may need more stimulus. That will depend on how the headwinds holding back growth play out.”
Miles added it was likely there would shortly be some positive impact from the BoE’s Funding for Lending scheme, in place to make loans cheaper and more plentiful.
However, he added: “If it turns out that not enough has been done, that the economy’s going to stay in a recessionary state and that’s going to drive inflation down, there is more we can do. We have not run out of ammunition.”
Miles, who the paper said had been a strong supporter of QE, said: “There is the scope for more quantitative easing … it remains a powerful weapon.”
