Bank of England: Economic Forecast

Lord Roberts of Conwy Excerpts

Wednesday 6th October 2010 Lords Chamber

[Lord Sassoon]

The critical question is about how we can see credit continue to flow to UK business, particularly small and medium-sized enterprises which cannot access the bond markets. Therefore it is encouraging that in the latest September data for August, credit conditions continue to improve modestly. That is critical. When it comes to bankers’ bonuses, there is unfinished business by both the Financial Services Authority and the Government to see what further action—whether that is disclosure or other measures—is appropriate to make sure that we get a proper balance in this area.

[Lord Roberts of Conwy]

Will my noble friend confirm that the Government are prepared to consider further quantitative easing if absolutely necessary, which does not appear to be the case at present?

[Lord Sassoon]

It is a question principally for the Bank of England, which has a clear inflation target, as to what further measures should be taken. I note that the recent IMF assessment is that the current monetary stance and data dependent approach to next steps is the appropriate one.