UK may see more monetary easing: BOE deputy governor says

It is “quite possible” that the Bank of England could implement additional easing measures looking ahead, according to  Bank of England Deputy Governor for Monetary Policy Ben Broadbent.

The BOE’s Monetary Policy Committee (MPC) voted to hold interest rates at a historic low of 0.1% last Thursday, having cut rates twice from 0.75% since the start of the coronavirus pandemic.

“The committee are certainly prepared to do what is necessary to meet our remit with risks still to the downside,” Broadbent told CNBC on Tuesday.

“Yes, it is quite possible that more monetary easing will be needed over time.”

Along with the two previous rate cuts, the Bank has also announced £200 billion ($247.55 billion) of new quantitative easing (QE), bringing its bond-buying program to a total of £645 billion.

Broadbent said the potential to stimulate demand would have to be weighed against the impact on banks’ ability to lend, adding that “this is a question that has been thought about on and off since the financial crisis.”