2010.09.2810:14:00UTC+00Uk Should Undertake Further Monetary Easing - Boe's Posen

News:

• Bank of England should undertake furhter monetary easing to avoid the same slump that took in Japan in 1990
• Money stimulus can be undertaken by buying additional QE gilt
• Further fiscal stimulus and corporate debt purchases can be undertaken if QE fails
• CPI is expected to fall below target
• BoE is expected to leave the policy unchanged for the next year - analysts

Quote:

• "The case I wish to make is that monetary policy should continue to be aggressive about promoting recovery, and subject to further debate, I think further easing should be undertaken," Posen said, according to the text of a speech to be given in Hull, northern England.

Background:

• MPC had kept the interest rate at 0.5pct and QE at 200bn pounds