Commenting on the MPC minutes published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“Regrettably, the MPC has not provided an adequate explanation for its disappointing decision not to extend the quantitative easing programme beyond £125 billion. We believe that the risks of a relapse in economic activity are still serious.

“With bank lending remaining weak and unemployment continuing to rise, there is still an urgent need to reinforce the stimulus. We urge the MPC to increase the QE programme at its next meeting. A credible exit strategy will clearly be needed but it cannot be implemented until the recession ends.”