LONDON – The Bank of England stands ready to support a nascent recovery in the British economy, a member of its Monetary Policy Committee said in an interview published on Monday.
"We at the Bank of England are standing ready, using our available policy instruments, to try and do all we can to support that move back into recovery," Ian McCafferty told the Yorkshire Post during a regional visit.
"We now believe that the economy is set for a recovery over the course of the next year or so.
"It clearly is going to be a recovery that remains modest and slow to take off rather than anything more dramatic...but at the same time I do think there are some underlying reasons as to why that recovery should now take place," he added.
McCafferty said the inflationary consequences of a further rapid fall in sterling would be "damaging", voicing a view similar to that of BoE Governor Mervyn King. King said on Thursday that the bank was not seeking any further fall in the pound, which now appeared to be fairly valued.
(Reporting by Olesya Dmitracova Editing by Maria Golovnina)