Not one or two but three MPC members have offered a very downbeat assessment of UK economic prospects in recent days.
Adam Posen, the most dovish member of the policy-making committee, stated on Thursday that the economy is ‘cratering’ and that growth this year will be little more than 0.5%. Martin Weale claimed earlier this week that he would not be surprised if growth this quarter was negative. And to top off the negativity, Paul Fisher suggested that the GBP 75bn of asset purchases undertaken by the BoE earlier this month were the minimum required and that the economy may already be shrinking. His remarks imply that he could be convinced to undertake further asset purchases. There can be little to disagree with here – the UK economy is like a bird without wings right now.
Adam Posen, the most dovish member of the policy-making committee, stated on Thursday that the economy is ‘cratering’ and that growth this year will be little more than 0.5%. Martin Weale claimed earlier this week that he would not be surprised if growth this quarter was negative. And to top off the negativity, Paul Fisher suggested that the GBP 75bn of asset purchases undertaken by the BoE earlier this month were the minimum required and that the economy may already be shrinking. His remarks imply that he could be convinced to undertake further asset purchases. There can be little to disagree with here – the UK economy is like a bird without wings right now.
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