Comments on today's MPC's decision on QE

In response to today's MPC's decision on QE, Mark Smith, Midlands Regional Chairman said:

"The decision to restart QE is not unexpected. But it is unlikely to be effective in supporting economic growth and may hold back a much-needed fall in inflation. The MPC should be focussing more strongly on ensuring inflation comes back down to target, which would ease the squeeze on consumers. With interest rates already extremely low, there are limits to the ability of monetary policy to counter the headwinds we are currently seeing from a weakening global economy and the euro crisis.

To support economic growth we need to look at other levers of policy. The "funding for Lending" scheme and other measures announced in the Governor's Mansion House speech should help ease the blockages in the financial system. And more emphasis is also needed from the government on supply-side measures which can support the longer-term competitiveness of the UK economy - such as reductions in business regulation, medium-term tax reform and a stronger programme of employment and training opportunities for young people."