BOE Posen: Stimulus, Reform Gives U.K. “Double-Barreled Push”
fxbom.com
06:09 PM
LONDON -(Dow Jones)- Monetary stimulus and a reformed banking system will fuel credit growth in the U.K., Bank of England policy maker Adam Posen said Tuesday.
In an interview with the BBC, Posen said government plans to improve the flow of credit to small firms and the BOE’s asset purchase program will give the economy a “double-barreled push,” according to a video of the interview posted online.
Posen, the foremost policy dove on the BOE’s rate-setting Monetary Policy Committee, said tax rises and public spending cuts will act as a drag on the economy in the short-term but added he wouldn’t characterize the government’s fiscal policy as “choking off recovery,” as some opposition lawmakers have done.
Posen said claims the U.K. economy is being wrecked by the sovereign debt troubles of the euro-zone are “somewhat exaggerated.”
“Fundamentally, barring absolute disaster, we are masters of our own destiny,” he said.
Full video: http://www.bbc.co.uk/news/business-15548346
-By Jason Douglas, Dow Jones Newswires, 44 20 7842 9272;
jason.douglas@dowjones.com
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