The weakening of the global economy looks more persistent than first thought and the Bank of England may have to consider further monetary stimulus if the situation worsens further, the BoE's chief economist said in a newspaper interview.
Growth was slowing in Britain's main trading partners and the confidence of the country's exporters has taken a knock, Spencer Dale told the Daily Mail in an interview published on Thursday.
"During the summer, we thought much of that was just a temporary soft patch, but that slowing now looks more persistent," Dale said.
Dale, who ditched his call for higher interest rates in August after a "material change" in the outlook for growth, said that the momentum had shifted towards a loosening of monetary policy.
"If things continue to deteriorate we may need to consider further monetary loosening," he said.
The Bank is now widely expected to engage in a fresh round of quantitative easing soon, and many economists see the BoE restarting its asset purchases already next week.
Source: www.reuters.com
Growth was slowing in Britain's main trading partners and the confidence of the country's exporters has taken a knock, Spencer Dale told the Daily Mail in an interview published on Thursday.
"During the summer, we thought much of that was just a temporary soft patch, but that slowing now looks more persistent," Dale said.
Dale, who ditched his call for higher interest rates in August after a "material change" in the outlook for growth, said that the momentum had shifted towards a loosening of monetary policy.
"If things continue to deteriorate we may need to consider further monetary loosening," he said.
The Bank is now widely expected to engage in a fresh round of quantitative easing soon, and many economists see the BoE restarting its asset purchases already next week.
Source: www.reuters.com
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