Dated: 20 October 2010
Commenting on the latest MPC minutes, Graeme Leach, Chief Economist at the Institute of Directors, said:
“Whilst the MPC seems uncertain as to the way ahead, the IoD is repeating its call for an extension in quantitative easing. There is probably more of a double-dip risk to the economy from a mistake in monetary policy not fiscal policy. We think that the downward forces on inflation from spare capacity and weak money supply growth justify QE2, despite inflation remaining above target and the looming VAT increase in January.”
