Inject another £50bn into economy, say directors

The Institute of Directors has brushed off fears of inflation and called for the Bank of England to inject more money into the economy to save Britain from a 'lost decade' of economic stagnation similar to 1990s Japan.

The organisation says the Bank should resume its policy of quantitative easing and introduce a further £50bn into the economy on top of the £200bn it has already created.

Graeme Leach the IoD’s chief economist said: "Monetary policy needs to help ensure a sustainable recovery is in place before the public sector recession begins.

"Yes, inflation is above target now, but a double-dip recession would raise the spectre of deflation. The growth threat is more of a danger than inflation."

The Bank of England's Monetary Policy Committee meets tomorrow and is expected to keep interest rates at 0.5 per cent and hold off on further quantitative easing for the time being.

Read a full report at the Daily Telegraph. ·