Commenting on the Bank of England Monetary Policy Committee’s decision to leave interest rates on hold, KPMG Chief Economist, Andrew Smith, said:
‘No change’ this month doesn’t mean there is no need for further policy relaxation. The economy has clearly entered a weak patch, apparently stalling in the fourth quarter, and further fiscal tightening is scheduled for the coming financial year.
“Against this backdrop a further round of quantitative easing looks likely to be announced in the next few months while interest rates will remain on hold for the foreseeable future.”
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Margot Cowhig, KPMG Corporate Communications
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KPMG Press Office: 0207 694 8773
Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.