The Bank of England might aim to cut borrowing costs in specific areas of the economy should its buying of government bonds prove ineffective in stimulating economic growth, Monetary Policy Committee member Adam Posen said.
He told a conference in Washington the Bank of England’s next step, if necessary, would be to shift into “heavy-duty credit easing”.
Mr Posen defined credit easing as the targeting specific sectors, such as the United States did with housing markets.
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