Commenting on the MPC minutes, published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The MPC was again unanimous in deciding to keep Bank Rate at 0.5% and to maintain the QE programme at £175 billion, despite differences of view within the Committee on the balance of risks.
“Figures due later this week are expected to confirm that the recession has ended, and that the economy has returned to positive growth. However, there are still serious risks of a double-dip recession, and the weakness of bank lending to companies remains a major obstacle to a sustainable recovery.
"We urge the MPC to increase the QE stimulus to £200bn in November, and to encourage the banks to lend, by imposing a negative interest rate on deposits held by commercial banks at the Bank of England.”