BoE ‘hawk’ makes call for QE2

Britain’s weakening economy may require another round of monetary stimulus, according to one of the “hawks” on the Bank of England’s monetary policy committee, the FT says. “Substantial further weakening of inflationary pressures would, of course, mean that additional monetary support rather than a withdrawal of that support would be the appropriate policy,” Martin Weale told the Doncaster Chamber of Commerce on Thursday. Mr Weale had backed a modest interest rate rise since last January, but reversed his position at the MPC’s last meeting. In his speech, Mr Weale noted that while he had earlier supported a rate rise as “a prudent insurance policy” against inflation when Britain and the rest of the developed world’s economies appeared to be recovering, there had since been a stark change in the economic environment.