“Obviously there is the risk of another recession and it’s higher than one might have thought a few months ago,” Weale said in an interview with Channel 4 television.
“But I’ve always said that it was quite impossible to say that a double dip couldn’t happen,” he said in the interview.
According to Weale, Britain’s economy may shrink in Q4 as the euro crisis hits business and investor confidence.
“Looking at the economy at the moment, I think the problems of the euro area and the knock-on consequences for our banks, for business confidence, for the way consumers feel about things are likely to prove important,” he said.
“I certainly do think the underlying rate of growth of the economy is weak now and I wouldn’t be terribly surprised if we were to see output contract in the fourth quarter,” he said.
Weale, along with his eight fellow rate-setters, voted to launch a second round of quantitative easing earlier this month.
Bank governor Mervyn King will appear before the Treasury Select Committee to explain his decision to inject a further £75m into the UK economy.
