Weale talks down QE2

 
Julian Harris
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FURTHER quantitative easing would boost economic output, one of the Bank of England’s monetary policy committee erstwhile hawks said yesterday. Yet Martin Weale -- who voted for higher rates for most of this year, before reversing his decision in August -- also said the time had not yet come for more easing, dubbed QE2.

“I do not think our August forecast or the more recent market movements since then as yet make a case for such a policy,” Weale told the Doncaster Chamber of Commerce. Despite economic worries, “business surveys do not suggest the picture is, at present, like the summer of 2008.”

Weale also said that Britons need to increase their saving for retirement. Otherwise, Weale said, “eventually people and particularly old people will be disappointed with their living standards... [and] this will create pressures to transfer resources from young people to old people.”