BoE official: Negative GDP data misleading

20 April 2012

Forthcoming official data regarding the British economy will not accurately portray the country's financial strength.

That is the view of Adam Posen, policymaker at the Bank of England, who has insisted the nation is in a healthier position than these figures will show, Reuters reports.

Earlier this week, it emerged that Mr Posen reversed his opinion that Britain requires further quantitative easing (QE) in the Monetary Policy Committee's latest meeting - a vote that sent shockwaves through the financial markets.

The official explained he was "genuinely on the fence" when making this decision, but insisted the Bank's prediction that gross domestic product figures published next week will show a decline is not an accurate reflection of the current situation.

"There's a truth that is different from the numerical reality," he added.

Earlier this week, Mr Posen's colleague Paul Tucker admitted that the UK's level of inflation "remains uncomfortably above target" at present.

By Gary Cooper

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