The UK economy is in the midst of a double dip recession – its first since 1975.
“The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.”
UK manufacturing is slowing down drastically increasing fears for growth. Despite this Prime Minister Cameron does not plan to abondaon austerity measures. It seems that instead of decreasing public debt these measures are increasing the government borrowing.
And now, according to Telegraph the Bank of England is going to put QE plans on hold as inflation fears loom.
“Economists said it would be a close call but most expect the Bank’s Monetary Policy Committee to say on Thursday that it will not extend quantitative easing, despite a shrinking economy in the first quarter and weak outlook. “
So if the government is not going to ease off austerity, the BOE is not going to do anything like QE to jump start the economy abd the public employment will continue to decrease so from where the impetus for gowth will come?