LONDON (MNI) – The turn for the worse abroad, and in particular in
the euro area, is pushing down on UK growth, Bank of England Chief
Economist Spencer Dale said in remarks carried on the Menmedia website.
Dale said that nervousness was high in the home economy and this
was weighing down on investment and spending.
“What is going on in the rest of the world is starting to push down
on growth. Domestically we are feeling very nervous and uncertain and
that is holding back spending both in terms of companies and their
investment plans,” Dale said.
He added that there was a degree of caution in consumers’ high
street spending patterns. He used the MPC’s mantra that inflation would
fall sharply in the new year, having hit 5.2% in September, while noting
the BOE’s power to boost UK growth was limited.
“We can only do so much to support growth in the UK when so much of
what is affecting our economy is what is happening with the rest of the
world. I hope in Europe, where uncertainty is weighing on our economy,
can be addressed quickly,” Dale said.
–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
