Monetary policy framework should be reviewed

The Times reports on the IEA's State of the Economy conference

Following Deputy Governor of the Bank of England Paul Tucker's recent suggestions of a negative base interest rate, the issue was addressed at the IEA's State of the Economy conference.

The Bank of England is not planning to charge lenders to park their money at the central bank to get them to lend more, Deputy Governor Charles Bean said today, describing talk of negative interest rates as “blue sky thinking”.

“I think it is sensible to review the framework to assess whether it is fit for purpose or can be materially improved, though the hurdle for change should be high,” he told a conference hosted by the free-market Institute of Economic Affairs.

“But there is a danger of expecting too much from monetary policy.”

Read the full article here (£).

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