Bank of England policymaker Adam Posen on Wednesday indicated that the Bank of England should do more to stimulate growth in the economy, which saw deeper contraction in national output in the second quarter of 2012.
The central bank should buy private debt, securitized debt or special bonds to finance construction or infrastructure, he said during an interview with BBC Hardtalk.
Posen said the BOE should do more "going around the banking system." The UK economy is in a state of poor growth, stagnation. "We could be doing better potentially," Posen said.
He noted that if the Eurozone were to break up, it would overwhelm the U.K. economy and leave it with no ways to deal with the situation.
Posen's term on the Monetary Policy Committee expires at the end of this month. He is set to head Washington-based Peterson Institute for International Economics.
by RTT Staff Writer
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