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MNI BRIEF: QE Ineffective But May Need More Stimulus: Tenreyro

LONDON (MNI)

Further stimulus may be justified for the UK economy even as it recovers, Bank of England Monetary Policy Committee member Silvana Tenreryo said Monday, in order to counteract higher unemployment and to close the wide output gap that is opening up.

Setting out her case in favouring negative interest rates over additional bond buying, Tenreyro was dismissive of further quantitative easing, saying that it only works well in dysfunctional markets "rather than providing net additional stimulus to the economy."

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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