UPDATE 1-UK's Osborne says recovery still needs central bank support
By David Milliken and William James
LONDON, July 11 (Reuters) - Market turmoil following speculation that the U.S. Federal Reserve may slow its bond purchases shows how the global economic recovery still depends on central bank support, British finance minister George Osborne said on Thursday.
"Monetary activism is what has been doing the heavy lifting," he told reporters.
Osborne has championed loose monetary policy as a way to support Britain's economy while his Conservative-led coalition presses on with spending cuts to reduce the country's large budget deficit against a tough international backdrop.
"The euro zone is still in recession, we have weaker data from China at the moment, and volatile markets in response to the Fed's announcement on the tapering of QE (quantitative easing) reminds us that the recovery is still very dependent on monetary stimulus from central banks," he said.
Next month the Bank of England - under new governor Mark Carney - is also due to respond to Osborne's request at his March budget for them to consider giving more detailed guidance on the future direction of monetary policy.
"Better information about interest rates will help households make informed decisions about their personal finances," he replied to a question about whether Britons' should take advantage of low rates to pay down debt.
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