After Mervyn King said it was “far too soon” to rule out further quantitative easing, the chief economist of the Institute of Directors said he believes quantitative easing will be extended and that a ‘W’ or even ‘VW’ recovery is likely. Responding to the latest inflation report, Graeme Leach said:
“We agree with the governor of the Bank of England that it is far too soon to conclude that a further extension in quantitative easing won’t be required. We think that it will, and that the risk of a double-dip or even a triple-tumble recession and recovery remains high.”
Credit and finance constraints are a growing concern among companies, judging by the below BoE survey data. Please note credit availability has been a known concern for SMEs for some time and the chart below is likely to overrepresent their views versus their economic impact (as they are so numerous). I tried to delve into the data but, as you can see, it is unavailable. Suggestions for alternative sources welcomed.
