Leading City economist Roger Bootle says "uncertainties" continue to plague the value of the Government's quantitative easing (QE) plan, and warns today's £50bn extension may not be enough.
The economic adviser to Deloitte and special adviser to the House of Commons says the initial fanfare surrounding QE that sparked a fall in bond yields has now passed, adding there are "few signs" it has helped boost bank lending. Bootle also says today's decision by the Bank of England to inject an extra £50bn into the economy - taking its potential spend to £125bn - also underlines the severity of the deflation risk in the UK economy. "I think the MPC may yet have to do even more," he says. "The MPC still has another £25bn of money sanctioned by the Chancellor which it can, and I thin...
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