The Bank of England's quantitative easing policy has not been inflationary and inflation will continue to fall as forecast this year, Bank of England policymaker Adam Posen said in a radio interview on Thursday.
It is going to keep falling all year just as we forecast, Posen told BBC Radio 5 when asked if the central bank's quantitative easing was creating inflation.
The central bank forecasts that inflation will fall below its 2 percent target in the second half of this year.
October's decision to inject 75 billion pounds into the economy had helped to support demand, Posen said. Things would be much worse if we hadn't done the quantitative easing I advocated and now the committee voted for, he said.
The Bank's Monetary Policy Committee will decide on the need for further quantitative easing next week and most economists expect another 50 billion pounds of quantitative easing as the economy is close to recession again.
(Reporting by Sven Egenter)