‘No Change’ This Month Doesn’t Mean No Need for Further Policy Relaxation, Says Economist

Michelle Remo, “Big 4″ observer
January 13, 2012 /

‘No change’ this month doesn’t mean there is no need for further policy relaxation, KPMG Chief Economist, Andrew Smith commented on the Bank of England Monetary Policy Committee’s decision to leave interest rates on hold.

The economy has clearly entered a weak patch, apparently stalling in the fourth quarter, and further fiscal tightening is scheduled for the coming financial year.

“Against this backdrop a further round of quantitative easing looks likely to be announced in the next few months while interest rates will remain on hold for the foreseeable future.”

 

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