NOTTINGHAM (MNI) – The UK recovery has not been strong and
productivity growth has been weak, but it is wrong to think the UK will
not return to the trend rate of growth in place for the past 120 years,
Bank of England Monetary Policy Committee Member Adam Posen says.
Posen said most members of the MPC also expected the UK to return
to, more or less, return to its long term trend growth rate. His
comments come at a time when the UK recovery appears to have stalled,
with the upcoming Q4 GDP data expected to show the economy contracted a
a little on the quarter.
In a speech here Posen focussed on whether trend UK productivity
growth has changed. He said people should not worry about the current
blip in productivity growth.
The MPC member also noted that inflation has come down and he said
it would continue to come down.
–London newsroom: 4420 7 862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MT$$$$]
