–BOE Weale Tells Channel 4 Underlying Rate Of UK Growth Is Weak Now
LONDON (MNI) – Bank of England Monetary Policy Committee member
Martin Weale has told Channel 4 television he would not be shocked if UK
output fell in the fourth quarter and that he finds it difficult to
predict how the eurozone will resolve its difficulties.
The BOE, back in its August Inflation Report, had an implied
forecast for Q4 growth of some 0.4%, but things have taken a turn for
the worse since then, and Weale gave a downbeat assessment of the UK’s
near term outlook.
“I certainly do think the underlying rate of growth of the economy
is weak now and I wouldn’t be terribly surprised if we were to see
output contract in the fourth quarter,” Weale told Channel 4 reporter
Faisal Islam in an interview, according to the latter’s blog.
The MPC member said there was obviously a risk of another
recession.
Back in July Weale voted for a 25 basis point rate hike but
supported the Monetary Policy Committee’s further stg75 billion in
quantitative easing that was approved at the October MPC meeting.
Weale is skeptical the eurozone can sort out all its difficulties.
“I find it difficult to … forecast how the Euro area crisis is
going to be resolved,” he said.
While Weale hopes for a clear resolution to be announced soon, he
says “I don’t think it would solve all of the underlying problems,”
such as the lack of competitiveness of the Greek and Portuguese
economies.
— London Bureau +20 7862 7491; drobinson@marketnews.com
[TOPICS: M$$BE$]
