MPC has done a very good job, says analyst

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MPC has done a very good job, says analyst

Tue 15th Sep 2009

The monetary policy committee (MPC) has done a good job of steering the economy using quantitative easing, according to an industry insider.

Paul Holmes, chief executive officer at Firstrung, felt that the committee has made some good decisions, but that it might now be time to stop pumping more money into the economy.

He stated that it would one step too far to introduce any more quantitative easing, because it could reach saturation point in the gilt and bonds market.

However, Mr Holmes pointed out that there have been positives so far achieved through the fiscal policy chosen by the MPC.

"It's not really bred into the real economy and I think that has actually been quite useful, because had it bled into the real economy, I think we would have ridiculous inflation."

Mr Holmes commented that the economic situation last year was much worse than it is now so and he claimed that the improvement has a lot to do with all the money that was printed.

This week, the MPC voted to continue but not extend its quantitative easing policy, from its previous level of £175 billion.

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