Growing pains
Despite the technical end of recession, that return to prosperity has yet to be confirmed.
The surprise fall in the level of unemployment, to just below 2.5
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Hide Admillion in the quarter to November, is encouraging but only really
marks a scratch to the surface of a huge problem. The expectation of more cuts, particularly across the public sector in the aftermath of
the General Election, is one good reason to be concerned about the economic prospects for the rest of this year.
That's why the Bank of England's monetary policy committee was right to hold interest rates at the record low, as well as to pause in its programme of quantitative easing (QE).
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Hide AdPrinting money, which this is effectively, is unprecedented in this country and ploughing on with the policy would not represent courage, but simply fear.
Britain's economy might not have sunk, as many expected 12 months ago, but the jump in inflation revealed yesterday shows there is still a long way to go before reaching safety.
The economy is not yet out of choppy waters.