Chamber calls for more QE

LIVERPOOL Chamber of Commerce has called on the Bank of England to embark on a further programme of quantitative easing to support under-fire businesses.

Commenting ahead of the Bank’s Monetary Policy Committee meeting today, Chamber chief executive Jack Stopforth said: “With the government’s tough deficit-cutting measures squeezing domestic demand, and problems in the eurozone creating difficulties for our exporters, UK monetary policy must remain as expansionary as possible.

“We believe that UK GDP will still record weak positive growth in Q4 2011, but the challenges in the first quarter of this year will increase. Therefore, it is vital for the MPC and the government to adopt measures to offset negative influences and help stimulate the economy.

“A further £50bn increase in the Quantitative Easing (QE) programme, to £325bn, will limit adverse effects on domestic demand. It will also provide support to exporters by helping to keep the sterling exchange rate competitive.”