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And yet another central banker who doesn’t understand monetary operations…
Has to be a new low for the BOE.
by Jennifer Ryan and Brian Swint
Mar 13 (Bloomberg) — Bank of England policy maker Kate Barker said the bankÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s decision to buy assets with newly created money is necessary to prevent deflation as BritainÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s recession shows signs of worsening.
Printing money ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œis the best course in order to achieve our objective of keeping inflation to target in the medium term.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œThe downside risks to growth, and therefore to inflation, identified in the February inflation report were in danger of crystallizing,ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â she said. Barker said the impact of the reduction in the benchmark to lower levels had become ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œsuccessively reducedÃƒÂ¢Ã¢â€šÂ¬Ã‚Â with each cut, and lower rates on their own would be insufficient to revive growth.