Thu, 05 Mar 2009
Commenting on today’s interest rate cut and the Bank of England’s decision to begin quantitative easing, Liberal Democrat Shadow Chancellor, Vince Cable said: "Today’s rate cut means the Bank of England has now run out of conventional weapons to fight this recession."
"With interest rates now close to zero and the real threat of prolonged deflation and recession, the Bank’s decision to start quantitative easing is understandable.
"Even with interest rates at a record low, the banking system is still in chaos with many families struggling to make ends meet.
"Directly increasing the amount of money flowing into the economy is now the only clear option. However, the Government must be careful that this kind of radical action doesn’t quickly turn deflation into high inflation."