QE case stronger says Bank rate-setter

Weak gross domestic product figures this week strengthen the case for more quantitative easing (QE) by the Bank of England, Martin Weale, a member of its rate-setting Monetary Policy Committee, said yesterday.

"I have found the figures something of a disappointment, worse than I expected," Mr Weale said in an interview with BBC Radio Newcastle, while on a visit to the North-east. "I'm certainly feeling that the argument [for QE] is stronger than it would have been if the economy had shown economic growth," he added.

However, Mr Weale also said above-target inflation remained a concern, and that the Monetary Policy Committee would have to take that into account as well.

Figures from the Office for National Statistics on Wednesday showed the economy contracted 0.2 per cent at the start of 2012 after a 0.3 per cent contraction at the end of 2011.