MNI BRIEF: UK Has Room For Monetary Easing-IMF

The UK has room to loosen monetary policy in the near term as a Covid second wave hits the economic outlook, the International Monetary Fund said in its Article IV consultation.
"A commitment to further government bond purchases over the next 12 months would be effective ... Other tools like negative policy rates could be brought in incrementally when needed, and it will be important to complete an assessment about how the net impact of such an approach could be maximised," the IMF said.
The Bank of England to date has only opted for relatively short-term asset purchase programmes, with its current purchase round set to be completed by year's end.