Business News

Published: Wednesday February 13, 2013 MYT 12:00:00 AM
Updated: Wednesday April 17, 2013 MYT 12:11:40 AM

BoE's King says limits to further stimulus of economy

LONDON: Bank of England Governor Mervyn King said on Wednesday there were limits to what further stimulus of the economy could achieve.

King, speaking to reporters after the central bank published its quarterly inflation report, said the Bank remained ready to do more to help the economy if needed.

"We must recognise, however, that there are limits to what can be achieved via general monetary stimulus - in any form - on its own," King said, adding that incentives to spend now reduced spending plans of households and businesses in the future.

The Bank has spent 375 billion pounds on buying government bonds but has held off from increasing the programme.

The government debt prices fell after King's comments.

King also told reporters that the Bank should not risk tightening monetary policy, even as it pushed back its expectations for when inflation would return to its target to early 2016, because the economy remained weak.

"Attempting to bring inflation back to target sooner would risk derailing the recovery and undershooting the target in the medium term," he said. - Reuters

Tags / Keywords: News, Business, Bank of England Governor Mervyn King, economy, government bonds, Business

advertisement

  1. 1MDB's annual land assessments set a precedent
  2. Property transactions dip, but house prices continue to rise
  3. 1MDB and US firm in solar tie-up
  4. Liew's 2.76% stake in S P Setia traded off-market at RM3.95 per share
  5. Bulk of 1MDB loans guaranteed by Govt
  6. Daya Materials, Italy's Cimolai in mobile straddle transporter
  7. M'sian property market falls 10.9% in volume, rises 6.7% in value
  8. Auditors highlight several critical areas in 1MDB's books
  9. Malaysian billionaire Quek to take slice of Alam Maritim?
  10. 1MDB placed RM12.5bil out with foreign fund managers

advertisement

advertisement