In his initial comments on the Inflation Report, published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The Bank of England is rightly very cautious about growth prospects, but it expresses more concerns than a few months ago about the future for inflation. While this is understandable, it is important that legitimate worries over medium-term inflation risks do not become the trigger for an unduly early withdrawal of the quantitative easing programme.

“Even if the initial GDP figure for the third quarter is revised upwards, UK prospects are still uncertain in the short-term. The risk of a double-dip recession remains serious. The MPC must persevere with a forceful QE programme, and in conjunction with the government, supplement this with specific measures aimed at stimulating bank lending to credit-worthy businesses.”