Bailey speech: Useful to have a predictable path for reversing QE

Following the Bank of England's (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Governor Andrew Bailey is delivering his remarks on the policy outlook.

Key quotes

"If outlook for inflation in jeopardy, MPC will not hesitate to act."

"Reduction in balance sheet is not a substitute for higher interest rates."

"Useful to have a predictable path for reversing QE."

"Stopping QE reinvestment gives a transparent path."

"If we stuck with 1.5% threshold for reversing QE, that would be tantamount to saying we were never doing it."

"We expect equilibrium interest rate to be very low for foreseeable future."

About Andrew Bailey (via bankofengland.co.uk)

"Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting."