BoE can fight a new slowdown, but fiscal policy has role too-Carney

BOSTON, Oct 16 (Reuters) - The Bank of England would probably cut a capital buffer it sets for banks to zero to stimulate lending in the event of a fresh downturn in the economy, and government fiscal policy could also play a role, BoE Governor Mark Carney said.

"You certainly can paint scenarios, globally and then in the UK, where that may not be enough," Carney said when asked at an event at Harvard University about the monetary policy options available to the BoE with interest rates so low.

"And certainly can you paint scenarios where you want to do some of that but you absolutely want to complement it by fiscal policy." (Reporting by Ross Kerber Writing by William Schomberg)