08/02/12

Commenting ahead of the MPC decision tomorrow (Thursday), David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
 
“The financial markets widely expect the MPC to raise Quantitative Easing (QE) by £50bn at its meeting tomorrow. Though many of the benefits of QE feel intangible on the ground, it remains a critical bulwark for the UK financial system and the wider economy. An increase in QE is necessary, as the challenges facing the UK economy and the ongoing problems in the eurozone highlight the need to sustain confidence.

“But QE must be supplemented by other policies to boost growth. As well as an aggressive deregulatory programme, a package of effective credit-easing measures or the creation of an SME bank would help to improve the flow of credit to viable firms. In his March Budget, we will be looking to the Chancellor to announce further measures to help businesses fight stagnation and deliver growth and jobs.”

Ends

Notes to editors:

ONS figures here.

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.

Media contacts:

Liz Larvin
Tel: 020 7654 5813 / 07825746812
Email: l.larvin@britishchambers.org.uk

Lisa Morrison
Tel: 020 7654 5812 / 07717682221
Email: l.morrison@britishchambers.org.uk