QE: As Bernanke dismisses QE3 UK business leaders urge King to think again

28th August 2011

However in the UK economists are urging the head of the Bank of England to consider further economic stimulus.

The Observer reports that economists will be watching a crucial survey of purchasing managers in the manufacturing sector this week for clues as to whether the recovery has stalled.

The Observer also reports that business groups are urging the chancellor to introduce new pro-growth measures in his autumn statement.

Andrew Cave of the Federation of Small Businesses is quoted as calling for targeted cuts in VAT to help key sectors – construction and tourism for example – to create more jobs.

Analysts at JP Morgan are forecasting a second round of QE in the UK next spring.

The Bank began the first round of the programme – which eventually totalled £200bn – in spring 2009.

The Financial Times(paywall) also reported how the US Federal Reserve has not ruled out doing more to support the stalling US economy, saying that the central bank "is prepared to employ its tools as appropriate to promote a stronger recovery" and will extend its September monetary policy meeting "to allow a fuller discussion".

More:

Bernanke speech: What is the remedy for America's problems?

Mindful Money's economist blogger Shaun Richards gives his take on Bernanke's decision. 

 

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