LONDON (MNI) – UK output figures for the first half of the year
have been encouraging, Bank of England Chief Economist Spencer Dale has
said in an interview with the Western Mail newspaper.

But he added that this strong growth needed to be maintained:

“For businesses to feel like their orders books are closer to
normal capacity, we need to see a sustained period of strong growth,”
Dale said.

“That is what we are trying to achieve in what we are doing.”

Dale admitted that the UK economy faced “substantial headwinds”:

“We are undertaking major fiscal consolidation and banks are still
in a position where they can’t lend yet,” he continued. But he said that
the Government’s decision to prioritise tackling the deficit was the
correct approach. Otherwise, he was reported as saying there would have
been a danger of increasing interest rates and inflation.

–London newsroom: 4420 7862 7492; email: dthomas@marketnews.com

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