| | |
Share

Further QE 'should not be considered for now'

The British Chambers of Commerce (BCC) has advised the Bank of England (BoE) against considering further expansion of the quantitative easing (QE) scheme.

Indeed, the Trades Union Congress recently called on the coalition and the Bank to take more action to coordinate their fiscal policies, suggesting that the BoE is only pursuing its course as a result of the relative lack of action on the part of government.

Chief economist of the BCC David Kern said it is encouraging that two members of the BoE's Monetary Policy Committee voted against the recent £50 billion increase to QE.

He underlined the fact that his organisation considers the latest round of asset purchases to be highly questionable.

"QE is not risk free and the longer-term inflation dangers associated with it cannot be ignored," the expert remarked, adding: "It should certainly not be used to try and prevent inflation from falling temporarily below target next year."ADNFCR-1898-ID-801411722-ADNFCR

Accountants and Business Advisers © 2013 BDO LLP. All rights reserved. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Services Authority to conduct investment business. BDO is the brand name for the BDO network and for each of the BDO Member Firms.