The Bank of England’s chief economist, Huw Pill, said on Wednesday that he does not see a return to quantitative easing any time soon.
“It doesn’t mean that at some point in the future we won’t be back to where we were – the need to ease policy and quantitative easing will come back,” he said in an online speech at an event hosted by the BoE.
“But I don’t predict that it will happen at least in the next few years,” he said.
The BoE’s chief economist also added that the full impact of recent rate hikes would not be felt until late 2023.
Referring to the role played by central banks, Pill pointed out that they can make tough monetary policy decisions, unlike governments that are driven by short-term political pressures.
“Independence from political pressures is what allows independent central banks to make uncomfortable moves today, to recognize some of the challenges we face today,” the BoE’s chief economist said.
Source: Capital
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