17 Apr

UK economy 'past the worst'

UK economy 'past the worst'

The UK economy may well be past the worst of the recession, an economist due to join the Bank of England's Monetary Policy Committee (MPC) has said.

David Miles, who is the chief UK economist and managing director at Morgan Stanley International, told the Western Mail he is "guardedly optimistic" about the future.

Discussing the recent actions by the Bank and the government to lower interest rates, cut taxes, provide fiscal stimulus and undertake quantitative easing, he stated that it was a historical lesson that such policies have "a substantial impact on demand in the economy and it may well be that the worst of the recession may well be behind us".

Should this analysis prove correct, the property market could be set for a boost, with renewed economic growth, improved employment prospects and rising confidence all helping to strengthen the sector.

David Miles will replace the outgoing David Blanchflower on the MPC at the end of May.

Professor Blanchflower has been on the MPC since 2006 and has been known for his strong advocacy of cutting interest rates, voting for a reduction in the base rate in every month of 2008.

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