MPC 'should expand economic action'

The British Chambers of Commerce (BCC) has called on the Bank of England to expand its focus with regard to its fiscal policies.

Specifically, the Monetary Policy Committee (MPC) was advised against the consideration of further expansions to the quantitative easing (QE) initiative.

European economist at Schroders Azad Zangana recently noted that the latest Inflation Report from the Bank expects inflation to drop below its two per cent target, which has been a sign that more QE is on the horizon in the past.

The minutes of the most recent MPC meeting indicate that voting on the decision to maintain QE at its present limit of £375 billion and to hold the base rate at its current record low of 0.5 per cent was unanimous.

Chief economist at the BCC David Kern said this comes as no surprise and that: "The MPC and the government should rely on tools other than conventional QE."