BoE not looking to buy any assets other than gilts, Posen said

Date: Tuesday 10 Jul 2012

In remarks last night Bank of England policy-maker Adam Posen indicated that the monetary authority is not looking to buy assets other than government bonds, although he did welcome the new 'funding for lending' scheme.

"There is a disagreement in the MPC (Monetary Policy Committee) about how useful it is and how risky it is for Committee on behalf of the Bank to purchase things other than government securities," Posen said at a seminar hosted by the University of Greenwich in Chatham, southeast England, Reuters reports.

"Parallel to the discussion we have had in the MPC - I don't want to say we're currently considering it because we are not - the leadership of the Treasury is very concerned about the government intervening in financial markets, having risky assets on its balance sheet and running foul of state aid laws," he added.

Posen also voiced his support for opposition leader Ed Miliband´s seeming embrace of a plan to securitize loans to small businesses, as he himself had suggested almost a year earlier.

AB

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