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GDP revision strengthens case for further QE, BoE says

Fri, 25th May 2012 16:54

The revised gross domestic product (GDP) data released by the Office for National Statistics just yesterday strengthens the case for further quantitative easing (QE) measures. That, at least, is the opinion of the Bank of England's (BoE) Martin Weale.

In an interview with the BBC, cited by Reuters, Mr. Weale indicated that, "I said when those (preliminary Q1 GDP) figures appeared that I thought they strengthened the case for further support for the economy, for further asset purchases (...) At the same time, of course, we have to remember that although we had recent good (inflation) news ... nevertheless the inflation rate is 3% rather than 2% and it's been above target for quite a long time."

The central banker also said that he was "sure" Britain could withstand Greece abandoning the single currency area, based on what it had survived over the past 100 years.

AB

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