BCC: MPC must concentrate on countering threat of double-dip recession

Commenting on today’s Monetary Policy Committee decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“With the £200 billion QE programme now complete, there was some speculation that the MPC may reassess their tactics. We support the decision not to make any changes at present.

“Although there is no current need to increase the QE programme, it is very important for the MPC to persevere with expansionary policies. Despite some tentative signs of optimism, the economy remains weak and fragile.

“To sustain confidence, the MPC must make it clear that it does not plan to start reducing the QE stimulus below £200bn, and that it will not contemplate any near-term increases to interest rates. The main priority must be to counter the threat of a double-dip recession.”