Bank's monetary policy on the right track - Posen

By @ibtimes on

The Bank of England's policy is on the right track to meet its inflation target after its latest decision to pump another 50 billion pounds of quantitative easing into the economy, policymaker Adam Posen said on Friday.

If you look at what we're forecasting, assuming the policy we have now put in place, that gets us close to target with the risks pretty balanced, Posen told reporters after a lecture at the University of Warwick in central England

It's hard to complain about that if you're an inflation-targeting central bank, he said.

Posen has been a strong advocate of more asset purchases to support Britain's shaky economic recovery, and last week the Monetary Policy Committee voted to raise its purchase target by 50 billion pounds to 325 billion pounds.

However, new Bank forecasts published on Wednesday suggested the purchases may not be extended any further, as inflation was predicted to be close to its 2 percent target in the medium term, despite short-term economic headwinds.

Posen said that unlike some previous Bank growth and inflation forecasts, he was comfortable with the latest set and those published in November.

(Reporting by David Milliken)

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