UK needs another £50bn of QE as economy weakens: BCC

The Monetary Policy Committee (MPC) must inject a further £50bn into Britain's fragile economy to stave off a double-dip recession, the British Chamber of Commerce warns.

David Kern, the chief economist at the BCC, sounded a strong note of caution in the group's latest Quarterly Economic Survey (QES). Its figures suggest the UK economy slowed considerably in the third quarter of 2010. He said risks of a setback are likely to remain serious for a "considerable time", and low interest rates will not be enough to stave off the risks of the UK re-entering recession. "The MPC should seriously consider increasing the quantitative easing (QE) programme to £250bn before the end of 2010, to enhance the economy's ability to cope. Reducing threats of a double-dip...