Bank of England governor Andrew Bailey said that quantitative easing has not reached its limits, but that he would like to reduce the stimulus to give the bank more tools if there is another economic hit. The practice, known as quantitative easing, is likened to printing money as the Bank creates new electronic money to buy the bonds. “I would not wish to suggest that we’ve hit the limits of QE (quantitative easing), we keep that under careful review, but there is no natural limits,” Mr Bailey said. In such an environment, quantitative easing gives central banks another string to their bow should something else happen in the economy. He added that the bank still has the ability to do more quantitative easing.

Source: Irish Independent May 18, 2021 16:52 UTC