✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

UK's Brown regrets lack of ECB quantitative action

Published 04/09/2009, 11:23 AM
Updated 04/09/2009, 11:32 AM
TGT
-

LONDON, April 9 (Reuters) - British Prime Minister Gordon Brown said it was unfortunate that the European Central Bank had not yet resorted to quantitative easing, according to extracts from a television interview to be broadcast on Friday.

The Bank of England has already started buying up assets with newly-created money to combat the recession after cutting interest rates to a record low of 0.5 percent, but the ECB is still considering cutting borrowing costs to boost demand.

"I think we are able to deal with our problems with our own inflation target and with the action of the Bank of England has taken which unfortunately has not been possible in Europe," Brown told Al Jazeera English in comments released on Thursday.

"Quantitative easing ... the Bank actually taking a more active role in the economy...I think that is to our advantage."

Brown has hailed steps already taken by central banks around the world to tackle the downturn but has also urged policymakers to keep taking action as necessary to restore growth.

ECB President Jean-Claude Trichet said on Thursday his bank still had some leeway to cut its main interest rate from the current 1.25 percent. Last week he said the ECB's Governing Council would decide whether to take further "non-standard" steps in its monetary policy at its next policy meeting in May.

Brown said being part of the European monetary union would not have given Britain a better defence against the global downturn.

"I don't think being in the euro would have helped us at this stage," he said. "But of course in principal being in the euro is a good idea, in practice it's always been difficult to see the economies converging."

(Reporting by Matt Falloon; editing by Stephen Nisbet))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.