date: 6 October 2011
embargo: For immediate release
Commenting on the decision today (Thursday) by the Bank of England to boost its quantitative easing (QE) programme by injecting a further £75 billion into the economy, TUC General Secretary Brendan Barber said:
'As government policies are running the economy into the ground, the Bank of England is right to resume quantitative easing.
'But while it is better than not doing anything, quantitative easing is no economic magic wand.
'We worry that it does more to help the finance sector than the rest of the economy and could fuel further inflation at a time when living standards are already being squeezed.
'This may be the best the Bank can do, but what we really need is a new type of QE that helps the real economy by creating jobs, boosting infrastructure and helping the transition to a green economy.
'Even better would be for the government to review its austerity measures and join the Bank in trying to boost growth, rather than the Bank having to try and undo some of the damage done by ministers.'
NOTES TO EDITORS:
- All TUC press releases can be found at www.tuc.org.uk
- Further TUC analysis of the Bank's decision can be found at www.touchstoneblog.org.uk
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Issued: 6 October, 2011