LONDON, Feb 14 (Reuters) - Asset purchases by the Bank of England remain effective, but other options may also help boost the economy, central bank policymaker Ben Broadbent said on Thursday.
'I'm confident it had an important effect and I still believe QE does actually ... but that doesn't necessarily mean that there isn't something else which would help,' Broadbent told Bloomberg News in an interview.
Broadbent did not specify what other tools beyond the central bank's Funding for Lending Scheme would be helpful, and was unconvinced about interest rate guidance of the type favoured by future BoE governor Mark Carney.
'I'm not convinced it would make a great deal of difference,' he said. 'I'd be nervous on whether it was the right thing to do or not, I'm not convinced it would bring great benefit. But it's another thing to which we're open.'
Broadbent also said that he was 'cautiously optimistic' about the recent recovery in financial markets, in contrast to BoE governor Mervyn King who said on Wednesday that it might not reflect economic fundamentals.
'I'm quite encouraged by what's happened in the last six months to financial markets, which seems to me a sign that some of that perceived tail risk has diminished,' Broadbent said. 'I don't think the rally in the last six months is arbitrary.'
(Reporting by David Milliken) Keywords: BRITAIN BOE/BROADBENT
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