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CBI REACTION TO BANK OF ENGLAND’S MPC DECISION

CBI

6 October 2011

The CBI today responded to the announcement from the Bank of England’s Monetary Policy Committee (MPC) that it will extend the Asset Purchase Programme.
Ian McCafferty, CBI Chief Economic Adviser, said:“With the risks to the economic outlook increasing, the MPC has acted promptly by extending quantitative easing this month. “This measure will help support confidence, but we need to recognise that its impact on near term growth prospects is likely to be relatively modest. Only once the turmoil in the Eurozone is resolved will confidence be fully restored.”