LONDON (Reuters) – Bank of England interest-rate setter Gertjan Vlieghe said the central bank should not scale back its stimulus, possibly until well into 2022, because a recent rise in inflation is likely to be temporary and COVID-19 remains a threat for the economy.
“I think it will remain appropriate to keep the current monetary stimulus in place for several quarters at least, and probably longer,” Vlieghe said in a speech to the London School of Economics on Monday.
“And when tightening does become appropriate, I suspect not much of it will be needed, given the low level of the neutral rate.”
(Reporting by William Schomberg and Kate Holton; editing by Michael Holden)
