Economy not yet out of the woods- Cable
August 7, 2009 11:02 AM
The Bank of England decided today to expand quantitative easing by £50bn to £175bn.
Liberal Democrat Shadow Chancellor, Vince Cable said:
"The Bank of England's actions are a clear signal that the economy is not yet out of the woods, despite some minor signs of recovery.
"With thousands of businesses still struggling to get loans, the Bank's decision to put more money into the economy is the right way to go.
"What is critical is that this further injection of money is done in tandem with more direct Government policy to help viable businesses get access to the credit they need to survive the recession.
"As financial institutions continue to hoard money, quantitative easing has not yet fed through to the rest of the economy. It's vital that it does."
ENDS
