An unconventional journey: The Bank of England's Asset Purchase Programme - speech by Paul Fisher

In a speech to contacts of the Bank's Agency for the South-West, Paul Fisher - Executive Director Markets and member of the Monetary Policy Committee - reviews the design, implementation and maintenance of the Bank's asset purchase programme, and discusses some of the issues that the MPC will face when it decides to exit from unconventional monetary policy.
Published on 15 October 2010

Paul Fisher notes that it is "...extremely difficult to know what would have happened in the absence of the asset purchase programme...". But in his view the programme has been "...extremely successful in meeting its immediate objectives"; the purchases were conducted in large size and quickly in order "...to ward off the threat of deflation". Amongst the various channels, he picks out the relative strength of broad money growth, lower long-term interest rates, increased corporate bond and equity issuance and declines in inter-bank borrowing rates, as examples of the programme's positive impact.

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