The decision of the Monetary Policy Committee (MPC) not to increase quantitative easing (QE) was the right one, an expert has claimed.
David Kern, chief economist at the British Chambers of Commerce, noted that although there was no need to implement any further QE at the minute, he feels it is important to keep "expansionary policies" open.
While the country is now out of recession, he stated, the economy is still fairly weak and the MPC must come out and announce it is not going to reduce easing below the current mark.
Mr Kern added that the main aim has to be to ensure that a double-dip recession does not occur.
Andrew Smith, KPMG chief economist, explained that while the MPC remained uncertain about the economy, it had to be cautious and see how things turned out, as although it may not be relaxing policy any further at the moment, it will not be in a hurry to tighten it either.
BCC: Not increasing quantitative easing the right decision
