LONDON, April 25 (Reuters) - Bank of England Deputy
Governor Ben Broadbent said central banks should not ignore
measures of money supply but claims that their quantitative
easing (QE) bond-buying programmes led to excessive inflation
are not backed up by evidence.
"No monetary policymaker should ignore information that's
relevant for future inflation. That includes the monetary
aggregates," Broadbent said in a speech on Tuesday to the
National Institute of Economic and Social Research, a think
tank.
"But like most economic data they need interpretation.
Certainly the very strongest claims - that QE inevitably leads
to rapid growth of commercial bank deposits (M4), on a par with
that in the central bank's balance sheet; and that this, in
turn, inevitably leads to excessive inflation - are not well
supported by the evidence," he said.
(Reporting by David Milliken and Andy Bruce
Editing by William Schomberg)
Messaging: @brucereuters))
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