Bank should give greater weight to countering risks of double-dip recession
10/02/10 | 12:48
Commenting on the Inflation Report published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The report acknowledges that inflation is likely to breach the 3% level over the coming months. However, we believe that this is a temporary spike – and are pleased that the MPC seems unlikely to overreact by raising interest rates. It is also welcome that the £200bn Quantitative Easing programme is likely to be maintained for the time being.
“We believe that the growth forecast in the report may still be unduly optimistic. There remains a significant danger of the economy slipping into a double-dip recession. The Bank and the Government must use all the tools at their disposal to prevent this from happening.”
Ends
Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
Notes to Editors:
The Inflation Report can be viewed here: http://www.bankofengland.co.uk/publications/inflationreport/irlatest.htm
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