Bank of England can reverse QE without hurting economy: Vlieghe

(Sept 26): The Bank of England can reverse its huge bond-buying stimulus programme without sharply pushing up long-term interest rates and hurting the economy, as long it explains the plan properly and moves only gradually, a top BoE policymaker said on Tuesday.

Gertjan Vlieghe said the careful messages sent out by the US Federal Reserve about the reversal of its quantitative easing (QE) programme had avoided sending the wrong signals about how fast it will wean the US economy off its crisis-era stimulus.

The BoE said in June it might start to unwind the 435 billion pounds ($778.7 billion) of government bonds it has amassed since the financial crisis once its benchmark interest rate reaches 1.5%, double its current level.

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