Policymakers at the Bank of England have come under pressure to take action today to 'cushion' the UK's recession-hit economy against further eurozone turmoil, the Guardian reports.
The report said while most City analysts expect the bank to lease interest rates on hold at 0.5%, and hold back from QE the eurozone crisis was escalating and could spark a fresh round.
David Kern, chief economist at the British Chambers of Commerce (BCC), said: “Demands for mow QE have started to rise due to worsening crisis in the eurozone and signed that the US and Asian economies are slowing.”
He told the Guardian the BCC would like to to see policymakers take a more innovative approach, of trying to unblock lending to businesses directly, instead of relying on QE to filter down through the economy.
