Bank's Tucker: UK's dip into recession possible - report

By @ibtimes on

A double-dip recession in Britain remains within the bounds of possibility, Bank of England policymaker Paul Tucker was quoted as saying in an interview in the Saturday edition of The Times newspaper.

The central bank launched a second round of quantitative easing (QE2) this month, pumping an additional 75 billion pounds into the faltering economy.

The Bank justifies QE on the basis that inflation has probably peaked already at September's three-year high of 5.2 percent, and that without QE, it is likely to undershoot its 2 percent target in the medium term due to weaker global growth.

Our ability to support demand and activity depends entirely on our commitment to achieving the 2 percent inflation target in the medium run, Tucker told The Times.

The best thing for savers is economic recovery. To have allowed the economy to lurch down into a spiral or vortex would have been hugely destructive for savers, he added.

(Reporting by Olesya Dmitracova)

Join the Discussion