"We still think QE works, even if in some respects it does not have the same bite it used to have," the Bank of England's Paul Tucker says in an interview by financial magazine Euroweek and published on its digital edition.

"Technically we could do more. It's just a question of what we think the risk to inflation would be. I don't think we should just have one option in these circumstances, which is why we are pleased to have launched the Funding for Lending Scheme," he stated.

BoE policy minutes have shown that some officials believe the FLS could be powerful enough to render further asset purchase unnecessary in November, Reuters says.

"There are no silver bullets. People rightly point out that there may be weak demand for credit," the central banker added.

Nevertheless, and as regards the effectiveness of FLS, Tucker indicated that, "it's early days, but the level of interest from banks and building societies has been high. So we think it will help gradually to repair the economy."

AB

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