Bank should give greater weight to countering risks of double-dip recession - Lincolnshire Chamber of Commerce and Industry, UK

Commenting on the Inflation Report published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

 “The report acknowledges that inflation is likely to breach the 3% level over the coming months. However, we believe that this is a temporary spike – and are pleased that the MPC seems unlikely to overreact by raising interest rates. It is also welcome that the £200bn Quantitative Easing programme is likely to be maintained for the time being.

“We believe that the growth forecast in the report may still be unduly optimistic.  There remains a significant danger of the economy slipping into a double-dip recession. The Bank and the Government must use all the tools at their disposal to prevent this from happening.”