Britain is not immune to a debt crisis, which is why the government is taking action to reduce borrowing, Bank of England policymaker Spencer Dale said on Tuesday.
Taking questions after a speech in London, Dale, who sits on the Monetary Policy Committee, also said the central bank's quantitative easing programme was not aimed at helping to ease the pressure on public finances.
I don't think we are immune to a debt crisis here which is exactly why the government has undertaken the fiscal consolidation it has done. But no, QE will play no role in that whatsoever, he told reporters after a speech.
He said QE was a monetary policy instrument.
As and when the economy normalises -- which is not now -- but when the economy does begin to normalise we will sell these gilts back. These gilts were purchased not to help the government's borrowing needs. They were not designed in any way to help fiscal policy.
Britain's Conservative-led coalition government admitted last month that it will have to borrow much more than it expected in the next few years due to the much weaker economic outlook, and that it will take two years longer than expected to eliminate a structural budget deficit.
(Reporting by Fiona Shaikh; Editing by Ruth Pitchford)