Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"We are pleased with the decision to increase the QE programme to £200bn, but disappointed that the MPC has not taken more specific measures aimed at stimulating bank lending to companies.
“With the economy still declining in Q3, forceful policies are needed to end the recession as soon as possible. The current measures, though helpful, will have to be supplemented with additional steps, and QE will have to be increased further.
“It is important for the MPC and the Government to act decisively in order to unblock obstacles to bank lending. One critical factor delaying Britain’s exit from recession is the difficulty smaller firms face obtaining adequate finance.”