The British economy needs at least another GBP 50 billion cash injection to kick-start recovery, Bank of England policymaker David Miles said in an interview to the Financial Times.
Only a "substantial" third round of emergency bond-buying will kick-start recovery of Britain's "stalled" economy, Miles told FT.
Asked if public spending cuts to reduce the budget deficit were to blame for the economy's poor performance, Miles said "I can't see any reason for thinking that."
However, he said a higher-than-expected commodity prices, which pushed up inflation and eroded household incomes, was one of the key reasons behind poor growth figures.
Bank of England policymakers retained the size of quantitative easing at GBP 325 billion earlier this month as demand for more stimulus by Miles, Governor Mervyn King, Paul Fisher and Adam Posen was overturned by a majority.
by RTT Staff Writer
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