LONDON – If the U.K.’s private sector continues to grow, the
UK can “come through” the coming period of sharp fiscal consolidation,
Bank of England Monetary Policy Committee member Andrew Sentance has
said.
“If business conditions are good and business is growing then we
can come through this period when the public sector is consolidating and
adjusting its finances,” Sentance told BBC Radio Ulster in an interview
aired Thursday.
“What we’ve seen in previous recoveries, particularly in the 1990s
recovery is that it is the private sector and business which is
ultimately the engine of recovery and in the 1990s the private sector
did create many more jobs than were reduced in the public sector and the
UK economy grew quite well and unemployment fell through that period,”
he added.
In earlier reported comments from the interview, Sentance repeated
his oft-stated view that the Bank of England should look to “gradually”
increase the Bank rate to head off inflationary pressures.
-London newsroom: 4420 7862 7491; email: wwilkes@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MSSFX$]
