By Claire West

Responding to the Monetary Policy Committee’s decision to expand quantitative easing by another £50bn, Graeme Leach, Chief Economist at the Institute of Directors, said:

“The £50 billion expansion in QE was no surprise and won’t be the end of the story. Double-dip recession, weak money supply and anaemic earnings growth suggests inflation will tumble into 2013. Moreover, in the current risk averse economic environment, with consumers and companies reluctant to spend, QE has got to work harder and harder. The end result is that we could see another £50 billion on top of this, within a few months.“