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UK Money News
BoE's Weale sees UK in stagnation, not recession - paper
Thu, 16th Aug 2012 14:40
LONDON, Aug 16 (Reuters) - Britain's economy is mired in stagnation rather than recession, wit
'The economy is stagnating but I have not heard people say 'this is a disaster',' Weale was quoted as saying on a regional visit in central England.
'For quite a long period now, we have had slight upward movement, and slight downward movement. Rather than describe it as a double-dip recession, I would describe it as a sustained period of stagnation.'
He said the squeeze on household spending through rising fuel prices was coming to an end. 'The euro zone is the biggest source of uncertainty,' Weale added.
The central bank has launched a new round of monetary stimulus in July and many economists expect further purchases of government bonds with newly created money once the current 50 billion pounds programme is completed in November.
While minutes of the August meeting indicated that some policymakers mulled stepping up the purchases, governor Mervyn King said last week that there was no urgent need to print more money despite a bleak outlook for the economy.
(Reporting by Olesya Dmitracova and Sven Egenter) Keywords: BRITAIN BOE/WEALE
(olesya.dmitracova@thomsonreuters.com)(+44 20 7542 8051)(Reuters Messaging: olesya.dmitracova.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
h the euro zone debt crisis the biggest source of uncertainty, Bank of England policymaker Martin Weale said in comments published in the Birmingham Mail on Thursday.
'The economy is stagnating but I have not heard people say 'this is a disaster',' Weale was quoted as saying on a regional visit in central England.
'For quite a long period now, we have had slight upward movement, and slight downward movement. Rather than describe it as a double-dip recession, I would describe it as a sustained period of stagnation.'
He said the squeeze on household spending through rising fuel prices was coming to an end. 'The euro zone is the biggest source of uncertainty,' Weale added.
The central bank has launched a new round of monetary stimulus in July and many economists expect further purchases of government bonds with newly created money once the current 50 billion pounds programme is completed in November.
While minutes of the August meeting indicated that some policymakers mulled stepping up the purchases, governor Mervyn King said last week that there was no urgent need to print more money despite a bleak outlook for the economy.
(Reporting by Olesya Dmitracova and Sven Egenter) Keywords: BRITAIN BOE/WEALE
(olesya.dmitracova@thomsonreuters.com)(+44 20 7542 8051)(Reuters Messaging: olesya.dmitracova.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
