Cash injection urged for economy

The British Chambers of Commerce (BCC) said an announcement this week on an expansion of the Bank’s quantitative easing (QE) programme would boost confidence and ease concerns around the fate of the eurozone. Despite the BCC’s message, most analysts expect the Bank’s Monetary Policy Committee (MPC) to keep QE at £275bn following Thursday’s meeting, with next month seen as the more likely date for action.

Calling for an immediate £50bn boost to the QE programme, David Kern, chief economist at the BCC, said: “The economic challenges facing the UK, and unresolved problems in the eurozone, highlight the importance of sustaining confidence within the business community.

“As the Government perseveres with its plan to reduce the deficit, it must make efforts to help the economy continue to grow.”

Recent data has shown a higher-than-expected lift in economic growth in December.