14/11/12

Commenting on today’s inflation report, published by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
 
"The new inflation report paints a grim but realistic outlook for the UK economy over the next two years. The forecast shows lower growth and higher inflation than in the previous quarterly report, and also acknowledges that the economy is unlikely to return to its pre-crisis growth path for some time.
 
"While this not an ideal situation, there is no justification for doom and despondency. UK businesses have accepted and are realistically adjusting to current market conditions. Although the rate of growth will be more modest than we would wish, the economy is expected to grow steadily over the years ahead. The government should accept that the private sector must be the main driver of any sustainable recovery, and therefore should adopt the necessary growth policies that will make such future growth possible.
 
“In policy terms, the new report confirms that further increases in QE, though not totally excluded, are unlikely to take place in the foreseeable future. The less-favourable outlook for inflation is unwelcome news for the UK economy, and additional QE should not be used to limit falls in inflation in the second half of 2013 and beyond.”

Ends

Notes to editors

Bank of England inflation report: http://www.bankofengland.co.uk/publications/Pages/inflationreport/ir1204.aspx

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk

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Allan Williams

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M: +44 [0]7825 746812
a.williams@britishchambers.org.uk