BoE’s Pill Wonders If QE Is The Best Tool To Address Market Dysfunction

© . FILE PHOTO: A man stands outside the Bank of England in the City of London, Britain April 19, 2017. REUTERS/Hannah McKay LONDON () – Quantitative easing could be the wrong tool to deal with future periods of bond market turmoil , especially given high inflation now, Huw Pill, chief economist at the Bank of England, said Thursday. Opening a BoE conference on sovereign capital markets research, Pill said the central bank may not want to repeat the hundreds of billions of pounds in additional bond purchases announced in March 2020 at the start of the COVID-19 pandemic. on the bond market. “Perhaps we were just lucky to meet these challenges at a time when macroeconomic and monetary considerations did not conflict with efforts to support market forces and support financial stability,” he said. “Now that inflation is much higher and threatening to get even higher, that can no longer be taken for granted,” Pill added. “Some of the documents presented here raise doubts as to whether monetary policy is the right tool to address these concerns about the functioning of the sovereign market.”

Leave a comment