IMF says the BoE is too tight

The IMF just concluded their article IV consultation of the UK. They conclude that monetary policy is too tight:

Further monetary easing is required. Anemic nominal wage growth and broadly stable inflation expectations suggest underlying inflationary pressure is weak, providing space for greater monetary easing.

That QE is the right first step:

Monetary stimulus can be provided via further quantitative easing (QE) and possibly cutting the policy rate. Evidence suggests that QE can continue to support demand by lowering long-term interest rates and improving banks’ liquidity. The Monetary Policy Committee should also reassess the efficacy of cutting the policy rate below its current level of 0.5 percent.

And that ‘credit easing’ ought to also be explored:

Options to further boost demand through credit easing measures that utilize the government’s balance sheet should be explored

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