Britain not facing dire economic situation as feared: BoE policymaker
12 Jul 2012
Britain's economic situation was not quite as dire as some feared, with private-sector job growth and exports painting a brighter picture, Bank of England policymaker Adam Posen was quoted as saying on Wednesday.
"But that's not to say it's a satisfactory recovery," the Kent Messenger newspaper quoted him as saying, in an article on its website. "Going forward, we think the British economy will tick up towards 2 per cent growth rate towards 2013 - 2014," he said.
The situation according to Kent, was not great but not as terrible as some people made it out to be. He added, confidence was lacking and people were not quite ready to make the big investment. He said, most were rebuilding their workforces, keeping them stable, giving minimal pay rises. Posen had been visiting businesses in Kent.
Posen urged banks to lend more to small businesses. "I think it's legitimate to say they've gone too far in terms of their excessive caution," he was reported as saying.
The Bank of England undertook a third round of quantitative easing asset purchases last week in a bid to spur the the economy, mired in recession.
The Bank of England was not considering buying assets other than government bonds to boost the ailing economy, Posen said on Monday.
"There is a disagreement in the MPC (Monetary Policy Committee) about how useful it is and how risky it is for Committee on behalf of the Bank to purchase things other than government securities," Posen said at a seminar hosted by the University of Greenwich in Chatham, southeast England.
