The Bank of England (BoE) may not be selling bonds fast enough to get inflation under control, a former member of the bank’s Monetary Policy Committee (MPC) told MPs on Tuesday.
Giving evidence to MPs on the Treasury Committee, Andrew Sentance, senior advisor at Cambridge Econometrics and former MPC member, said there is the case for going “a bit faster” to help “reinforce the impact of interest rates on inflation and on the economy. But that doesn’t seem to feed into the strategy.”
Since the global financial crisis in 2008, the BoE used Quantitative Easing (QE), colloquially known as printing money, four times to lower interest rates, buying a total of £875 billion in government bonds and £20 billion in Corporate bonds….