Bank of England under pressure
The British Chamber of Commerce argues that the Bank of England should ask the government for permission to start a further phase in its money printing program. The Chamber supports that a recovery from the recession is not guaranteed at this point, and that the central bank should extend its asset purchase program to the full GBP150 million.
Economists say the Bank of England may decide this week to stick to its current plan to print GBP125 million in new money to try and pull Britain out of the recession. Concern isn't in deciding if the recession is over, but how fast recovery will take place. It is being argued that policy needs to become more effective and that the central bank should go beyond GBP150 million. Uncertainty over quantitative easing is placing sterling exchange rates under pressure.
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