"Zen International" - Bank Faces Pressure On Quantitative Easing...

Online, April 19, 2010 (Newswire.com) - "Zen International" has criticized suggestions by the so-called "shadow MPC" (Monetary Policy Committee) that the Bank of England should prepare to re-launch its quantitative easing program and keep interest rates low for the foreseeable future.

The shadow MPC meets under the auspices of the Institute of Economic Affairs and has suggested that Bank rate should remain at its present 0.5% indefinitely to solidify the economic recovery but analysts at "Zen International" said that the consequences for the country would be dire if the BoE were to follow the suggestions. http://www.bankofengland.co.uk/monetarypolicy/overview.htm

The UK is under increasing pressure from investors and credit ratings agencies to bring its budget deficit under control or face losing its coveted triple-A sovereign debt rating and the ensuing difficulty it would have borrowing money.

The shadow MPC are apparently concerned at the fragility of the recovery and believe that additional monetary stimulus must be administered to avoid the much dreaded double-dip recession but "Zen International" believes such action to be extremely irresponsible and potentially damaging to Britain's long-term future.

"Zen International" maintains its view that the British government must begin to implement spending cuts and tax hikes in order to reduce the deficit rather than count on a weak currency to make what little the country exports cheaper to foreign markets. http://www.bankofengland.co.uk