RTTNews - Tuesday, Spencer Dale, a Bank of England policymaker, said the single most important lesson from the current financial crisis is the need to expand the range of instruments available to policymakers to tackle emerging imbalances.

In a speech at the Annual Conference of the Society of Business Economists in London, Dale who is also the Chief Economist of the central bank said short-term interest rates are a blunt instrument available and are not well suited to the task of managing asset price bubbles and economic imbalances.

Dale acknowledged that recent events must serve as a wake up call for policymakers. He said strengthening the policy framework should lead to greater economic and financial stability. The process of increasing the robustness of the macroeconomic policy framework should be seen as continuous, not a one-off response to the current crisis, he added.

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