UK needs QE "top up" to revive economy - BoE's Fisher
Thursday, December 13, 2012 - 03:25
Dec. 13 - The Bank of England will have to inject more stimulus into the flatlining economy next year, says BoE policymaker Paul Fisher.
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Years into the financial crisis and the UK is struggling more than most developed economies to recover so isn't it time for -- policy rethink. -- I spoke to Bank of England policymakers Paul Fisher. First solely inflation target in -- mean it isn't set by bankers have by the government and and that's -- -- from them so they want to change the direction. In which was sitting on to policy. We actually do not have enough and flexible inflation target we have a very flexible. Which he's what was demonstration either lost to two four years in fact. We have been setting a very accommodative monetary policy. Despite the fact that we had to cough chills pushing inflation upwards because we were confidently inflation will come down in the long run. And I mean that would cause a sinful to try and support output and employment which is what we've been doing. So as not to have an -- for export target. And there's number of different ways you can say -- intelligence community policy. And that's not suffer for government to do it. But the bank has been I mean let's be honest to the bank has been. Pursuing policies. To achieve other goals out of just one to 2% inflation targeting such as. Boosting growth about increasing buying planes and as is that thanks so formalize them. Well it's resorting formalized an agreement what I mean it says -- used to control inflation target a subject that we had. An objective to meet the government's. With the pitches -- output and employment. And that's waiting and it's very explicit in agreement about exactly -- we -- to do that if we have inflation shelves which take just like we're talking. We have to think very carefully at how quick can bring inflation back. So that we can actually -- -- growth and employment part of the agreement and that's what we've been doing. He said last month we may well needs some more easing next year. Do you still hold that -- Yes I do. The the way that let people see works easy to when he change policy don't have a constant effect for one time. Such policies -- increasing its effect on the economy and and that way you know at some point in the future. So if we won't keep the cost among -- he still lost to keep it can be stimulated. -- that we need to -- pop the asset purchase program in future change in course next year. I would like to predict what the timing is so that was our team knows that my expectation is is more likely than not. That we would need to continue to be supportive as we have been. Because which -- -- -- -- held by the majority of and he slaps -- -- what my own views on on this continent and that's what they'll be looking for. And I think we do have to take into account inflation outlook. That is out an agreement inflation is still the only time we expected before -- And might see some reassurance inflation's coming back to target. Before committing to -- to the next round of some places even if the economy fell into an unprecedented support that reception. Well listen to a lot of written about -- and we've been in double dip recession essentially come he's been flat for velocity is some course been positive some negative. Yes technically -- -- because if you recession. The underlying pictures we've just been flat -- is still flat it's not wonderful place. But nor is it going efficiently. I think just being flat is sufficient for us to want to keep estimates of policy. -- -- that risks losing control of inflation expectations.
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