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The Bank of England (BOE) Deputy Governor Dave Ramsden crossed wires, via The Times, during the early Tuesday morning in Asia. The BOE policymaker cited readiness on the part of the “Old Lady” to escalate the Quantitative Easing (QE) if the economy falters again.

Key quotes

The Bank of England (BOE) will do more and faster quantitative easing if the economy slows and markets wobble again.

The pace of gilt purchases under the QE would accelerate if we see signs of market dysfunction.

The bank has significant headroom to do more if economic risks crystallized.

The recovery is going to continue.

A key outcome is what happens to the labor market. Some companies are going to go under. Some jobs are going to lose.

Unemployment peaks at 7.5% but the risks are it will be higher than that. You could have GDP quite weak.

FX implications

GBP/USD pair showed no major reaction to the news considering the absence of UK/EU traders. The cable pair takes rounds to 1.3070 by the press time.