IoD reaction to MPC decision

Dated: 12 January 2012

Commenting on today’s decision by the MPC to leave monetary policy unchanged, Graeme Leach, Chief Economist at the Institute of Directors said:

“Maintaining the status quo was the right decision for 3 reasons. Firstly, because changing policy in January before you have the full picture of the economy over Christmas is always risky. Secondly, because the MPC needs to see further evidence of the impact of QE2. And finally, because the MPC needs to see the extent to which ECB intervention as lender of the last resort to banks improves the outlook for sovereign debt. We think the euro crisis could yet get a whole lot worse and so we still expect a substantial increase in quantitative easing by the Bank of England this year.”

ENDS

Contact Points

Edwin Morgan
Communications and Policy Officer
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

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