BCC calls for quantitative easing increase to aid business confidence

Date: 10th July 2009

The British Chambers of Commerce (BCC) has called for the government to increase its programme of quantitative easing in order to bolster business confidence.

The call comes after the Monetary Policy Committee (MPC) voted against using the final £25 billion allotted to the asset purchase programme.

It was suggested by the BCC that without quantitative easing running at full capacity, business confidence would continue flag.

David Kern, chief economist at the BCC, said: "We disagree with the decision not to use the final £25 billion allotted to the asset purchase programme.

"Quantitative easing is not yet fully effective and there is a strong case for raising the proportion of private sector assets that the MPC purchases."

He confirmed that it was important to "significantly increase" the quantitative easing programme’s size, so as to "underpin business confidence".

The BCC have called for the chancellor to increase programme's ceiling by £50 billion, to £200 billion.