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NECC Reaction to MPC Decision

 

Commenting on today's decision by the Bank of England's Monetary Policy Committee to maintain interest rates at 0.5% and increase Quantitative Easing by £50bn to £375bn, NECC Director of Policy, Ross Smith, said:

NECC Reaction to MPC Decision Commenting on today's decision by the Bank of England's Monetary Policy Committee to maintain interest rates at 0.5% and increase Quantitative Easing by £50bn to £375bn, NECC Director of Policy, Ross Smith, said:

"This is an understandable decision to oil the wheels of the financial system in light of the continuing turmoil in the Eurozone.

"However, the extent to which QE passes through to the real economy is limited, and this needs to be coupled with more innovative measures including purchase of private sector assets.

"Our members reported further growth in our recent Quarterly Economic Survey, but this is being held up by fairly weak levels of investment. Making sure finance is available and affordable is critical to giving the recovery real impetus."