"PRINT MORE MONEY" CALL BY BUSINESS
West Midlands business leaders are calling for the Bank of England to pump another £25million into the economy through its “quantative easing” programme to help the country climb out of recession.
Last week the UK was expected to buck the trend of recent months by increasing output, but unlike the US and other leading industrial nations, our productivity continued to decline.
Birmingham and Solihull Chamber of Commerce and Industry (BCI) says it highlights the need for Bank’s Monetary Police Committee to effectively keep printing money when it meets on Thursday.
BCI Policy Advisor Will Rogers said: “In the wake of figures which are showing a shock fall in UK output between July and September, it is imperative that the local and national economy is handed a boost through further fiscal stimulus.
“Bank lending remains in dire straits and the money supply is weak with growth well below what is needed for a decent economic recovery.
“Last week, the United States, the world's largest economy, joined major countries such as France and Germany in emerging from recession, leaving the UK lagging well behind.
“In the long term, the challenge in the UK is to get organic growth - growth that isn't helped by fiscal steroids. However, until we see the benefits of quantitative easing, the MPC must continue to boost the money supply as there is no doubt that the UK remains in recession.”
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