Former member of the Monetary Policy Committee (MPC) David Blanchflower says the UK will need "a lot more" quantitative easing (QE) to avoid a double dip recession.
Speaking on last night's Channel 4 News, Blanchflower said the Bank of England should already be pumping new money into the economy. "It is going to need a lot more QE," he warned. He said yesterday's cautious forecasts from Bank Governor Mervyn King, who said the economy will continue to improve but it will be "a choppy recovery", were "overly optimistic". Yesterday, the Bank of England (BoE) revised down its forecast for UK economic growth and said it expects inflation to remain above the 2% target until the end of next year. GDP growth was estimated to have risen 1.1% in the ...
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