CBI responds to Bank of England quarterly monetary policy report

Rain Newton-Smith, CBI Chief Economist, said:
“With interest rates already so close to zero, it’s unsurprising that the Monetary Policy Committee kept its powder dry this time around. Despite early signs of a recovery gathering pace, downside risks to the outlook are still looming large, so a “wait and see” approach seems like the right one at present.

“Further monetary stimulus may be necessary if we see additional disruptions to demand or supply, which could happen in the event of more local lockdowns or stalled progress on Brexit negotiations.

“The government must do the heavy lifting on both of these near-term threats, ensuring a coherent plan for any second wave of infection and securing an ambitious Brexit deal that protects jobs. The path to full recovery is fraught with uncertainty, but these steps will help revive economic growth.”