Sentance predicts inflation fears will put brakes on more QE

Former Monetary Policy Committee member Andrew Sentance does not expect the Bank of England to unveil more QE tomorrow, and said this is the right course of action to avoid triggering higher inflation.

Speaking to Bloomberg TV ahead of the Bank’s interest rate announcement on Thursday, Sentance said he expects the BoE to hold rates at their historic lows. However, he added policymakers must do more to address the real issues facing the global economy. “I think the most likely scenario is that there will not be, and that would be the right thing,” he said. “The committee was very quick to inject more QE last autumn and continued on through the winter but I am not sure it is really addressing the problems the economy faces at the moment. “A lot of the problems are driven by the global...