BoE: UK stimulus might not be necessary

1 March 2012

It may be unlikely that the UK will require stimulus in addition to the round of bond purchases currently taking place.

This is the suggestion of Bank of England policymaker Martin Weale, who noted inflation in the nation might end up being more persistent than analysts have predicted, Bloomberg reports.

During a speech given in London, Mr Weale explained pressures on wages and steeper oil prices could be the driving factors behind this trend.

The industry figure anticipates there will not be another programme once the current one draws to a halt, adding consumption appears to be on the up once more and "indicators of the state of the economy this year have been more positive for overall gross domestic product growth".

However, he went on to point out that the positive signs are not guarantors of progression, noting movement this year could be hard to predict due to extra breaks such as the one taking place for the Queen's diamond jubilee.

By Claire Archer

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