Commenting on the inflation figures for September, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“CPI annual inflation fell further below the Bank of England’s 2% target, and the RPI measure remains deep in negative territory. Given the threats facing the economy, this allows the MPC to provide additional stimulus without fear of a short-term upsurge in inflation.
"Although the stock market is buoyant and the housing market is improving, the tentative signs of UK recovery remain very fragile. Bank lending is still too weak, and this poses very serious problems for small firms. The recent disappointing figures for manufacturing highlight the serious risks facing the economy.
"Against this background, it is important for the Bank of England to increase the quantitative easing programme to £200bn, and to consider special measures to stimulate lending"