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QE decision shows Bank thinks economy far from recovery says Cable

Thu, 05 Nov 2009

“The Bank of England clearly thinks that the economy is still a long way from recovery," said the Liberal Democrat Shadow Chancellor.

Commenting on the news that The Bank of England's Monetary Policy Committee (MPC) has decided to pump an extra £25bn into the economy in their quantitative easing programme, Vince Cable said:

“The Bank of England clearly thinks that the economy is still a long way from recovery.
 
“As the UK is one of the last developed nations to still be in recession and with interest rates already at a record low, the Bank has few options other than extending quantitative easing.
 
“While the Liberal Democrats support the principle of quantitative easing, it is clear that as banks continue to hoard liquidity, this money is not feeding through to the wider economy.
 
“There is now a danger that we are simply throwing more and more money at a problem with little evidence that it is having any positive impact beyond the financial sector.”