Cable points to "uncertain" economy following Bank of England minutes

20/08/2009

Vince Cable has weighed in on revelations of disagreements among Bank of England policymakers.

Since March, the Bank has been running a programme of "quantitative easing", which sees the institution printing new money in order to boost the flow of cash around the economy.

In turn, it is hoped that the scheme will head off the worst effects of the credit crunch.

Earlier this month, the Bank policymakers voted to increase the size of the programme from £125 billion to £175 billion.

However, this week minutes of the meeting were released, showing that three of the nine members of the policymaking committee wanted to see a £75 billion increase.

Mr Cable said: "These minutes further underline the massive uncertainty the economy faces.

"Meanwhile the government continues to bank on a swift recovery to help rebuild the public finances, an outcome that is extremely uncertain."

Over recent months, the Bank has also cut interest rates to an all-time low of 0.5 per cent.

The decision to maintain this rate for August passed by nine votes to zero among the committee.

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

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