BoE's Posen:Too early to exit easy monetary policy

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TOKYO | Sun Nov 29, 2009 6:30pm EST

TOKYO Nov 30 (Reuters) - Bank of England policymaker Adam Posen said it was too early to exit the central bank's easy monetary policy as Britain, along with the United States, faces the risk of a double-dip economic downturn.

When to raise interest rates and stop buying government bonds is a difficult decision, Posen told Japan's Nikkei newspaper in an interview published on Monday.

The Bank of England should start discussing the topic but there is no reason to rush for an exit, Posen was quoted as saying.

The central bank's Monetary Policy Committee voted to increase its asset-buying or quantitative easing programme by 25 billion pounds ($41.28 billion) in November. ($1=.6056 Pound) (Reporting by Leika Kihara) ((leika.kihara@thomsonreuters.com; +81-3-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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