BoE’s Fisher and Bean upbeat on funding for lending
Thu 25 Oct 2012
LONDON (SHARECAST) - Remarks from two members of the Bank of England’s (BoE) Monetary Policy Committee (MPC) have contributed to some economists no longer expecting the central bank to proceed with a further round of quantitative easing come November.
Thus, and in remarks to the Welsh newspaper Daily Post, deputy governor Charlie Bean said that: “Looking at the UK economy the expectation is growth should be picking up (…) there is bound to be volatile movement from quarter to quarter but the underlying trend is for growth."
Also of interest, he indicated that the Funding for Lending Scheme (FLS) “should start to make an impact.”
Paul Fisher was even more upbeat as regards the FLS, indicating that: "We are seeing a fall in bank lending costs across the whole spectrum," he said. "So anybody whose loans get refinanced over the next 18 months, it should mean they get a better rate than they would have done."
Even so, and concerning the prospect of further government debt purchased, he is described by some as having given a guarded response. In his own words, “There is no need or pressure on us individually to make a decision before November's meeting."
Lastly, and worth taking into account, economists believe that neither had yet seen the advanced release of today’s GDP data before making those statements.