BoE policymaker wants officials to ‘think laterally about recovery’

<p>Ian McCafferty has suggested lateral thinking when it comes to bringing about an economic recovery.</p>

A Bank of England (BoE) policymaker has recommended officials think outside of the box about ways to support the UK financial recovery.

Ian McCafferty has indicated he may support fresh measures if needed in order to target certain weaknesses in the economy. He told Bloomberg Television that an "unorthodox means to conduct monetary policy" may need to be considered in the near future.

The decision-maker also noted that the BoE's current mandate is reasonably malleable and that a nominal gross domestic product target may only be of use as a temporary measure under "unusual circumstances".

When asked about the pound and whether he favours softening it to make UK products appear more attractive to foreign markets, Mr McCafferty stated that competitive currency devaluation in order to help exports is "self-defeating", as it encourages copycats overseas.

At 15:00 GMT, the pound plunged by 0.5 per cent in trading with the dollar to £1 buying $1.590, while it slipped by 0.1 per cent in trading with the euro to €1.194.

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