A member of the Bank of England?s rate?setting Monetary Policy Committee says he fears Britain could be pushed back into recession by the government?s austerity moves and slow recovery in key export markets.
Adam Posen said in a speech Wednesday at an economic conference that he sees the British economy poised between a weak recovery and a drop back into recession.
He says that if the country is fortunate, its current monetary policy and sustained growth outside Europe will keep Britain out of recession.
If that proves to be the case, Posen says Britain will continue to have above?target inflation. He adds that once a recovery is secure he would support a rise in the base rate from the present all?time low of half a percent.