Chancellor of the Exchequer George Osborne stated during an interview yesterday that economic recovery in UK will be Choppy, while agreeing with BoE's monetary policy makers of preserving interest rates at record lows of 0.50 percent, aiming to stimulate growth.
Osborne stated that People talk a lot about fiscal stimulus, adding that We shouldn't forget about monetary stimulus. Market interest rates have fallen a long way, and that has an effect on the UK economy.
Osborne announced an emergency budget plan aiming to reduce the country's deficit that mounted to more than 11 percent of 2009 GDP. The actions we took in the budget have removed the biggest downside risk to the recovery -- a loss of confidence and a sharp rise in market interest rates, Osborne said.