Bank of England policymaker David Miles said the central bank could sell off its gilts once Britain's economy picked up, even if the government was still borrowing, according to an interview with The Scotsman newspaper published on Wednesday.
Miles was also quoted as telling the paper that it was right for the BoE's Monetary Policy Committee to focus on inflation, which provides "a great summary of the overall conditions in the economy".
He added that banks' problems and the effect this had on the availability of finance to businesses had pushed the Bank into a "grey area" between monetary and fiscal policy, such as with the new Funding for Lending Scheme, The Scotsman said without providing Miles's direct quotes in full.
The comments broadly chimed with a speech by Miles late on Tuesday, when he said that while a rapid return to a more normal monetary policy was not imminent, the timing and the speed of reversing the "unusually accommodative" policy would be determined by the outlook for inflation.
"I believe there are likely to be advantages to raising Bank Rate first (before selling back bonds), and I would expect this to be the strategy," he said.
(Reporting by Olesya Dmitracova; editing by Guy Faulconbridge and Toby Chopra)