MPC must act boldly to increase benefits of QE, says BCC
05 Apr 2012
- ‘Keeping rates and QE programme on hold was the right decision’
- ‘QE has not led to meaningful increases in lending to businesses’
Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“Following the February increase in Quantitative Easing (QE), the decision to keep interest rates and the QE programme on hold was widely expected. With QE still being implemented, and given the MPC’s self-imposed practice of only buying gilts, this was the right decision. However, last month two MPC members voted for an increase in QE to £350bn. While support for this may be strengthening, we believe that adding to QE would be unnecessary.
“We supported past increases in QE because they eased pressures on the banking system and helped to underpin financial stability. However, this has not led to meaningful increases in lending to small businesses, and the benefits to the real economy have been limited. Increasing QE now would only have a marginal effect. There is ample liquidity in the financial system and there is no need to drive down yields on government bonds further.
"The main policy aim must be boosting the unduly low rate of economic growth by increasing lending to viable businesses. To achieve this, it is vital to make the new credit-easing scheme more substantial. But the MPC also has a part to play. The committee should reconsider its reluctance to include assets other than gilts in the QE programme, such as securitised SME loans. This will make the banks less risk averse, and will help to improve the flow of lending to credit-worthy firms.”
31 Jul 2015
St Elizabeth Hospice today announced Jimmy Doherty as patron of their exciting new project Pigs Gone Wild which is set to raise £100,000 for the local charity. Pigs Gone Wild will see around 40 pig sculptures displayed on an art trail around Ipswich and the Waterfront in summer 2016 in aid of the hospice.
29 Jul 2015
The winners of the inaugural ONE Haverhill Apprenticeship Awards, sponsored by Sanofi, have been announced at an event hosted by The Days Inn Haverhill.
Prizes were awarded in five categories: Apprentice of the Year; Apprenticeship Employer of the Year, sponsored by 1st Stop Recruitment; Overcoming Adversity, sponsored by Cambridge Regional College; Apprentice Champion of the Year, sponsored by West Suffolk College;and the Highly Commended judges’ award, sponsored by St Edmundsbury Borough Council.
28 Jul 2015
Anderson Yates consultants have been asked to rescue three ERP projects in the past two months, all involving companies that employ less than 250 employees - deploying cloud based ERP. What went wrong for them and what lessons can be learned that will ensure your company doesn’t fall into the same traps? (Part 3)